A system and method for compensating subscribers for permitting playing of advertisements as ring back tones and direct activation of advertised services is provided. The method includes receiving by a telecommunication service provider a call initiated by a caller. The method further includes establishing status of at least one of caller and callee by checking home location register of the telecommunication service provider. Establishing status includes determining RBT subscription status of caller and callee. Depending on the RBT subscription status of caller and callee, the call is transferred to a tone player within RBT system of at least one of caller and callee. A compensation system then selects a media file to be played to caller based on RBT to Advertisement ratios of subscribers. The selected media file may be an RBT file or an advertisement message, which is then played to the caller.