Re: [projectvrm] Q: value of qualified vs unqualified lead

[Anandan Jayaraman < >]

I did a project on addressable advertising for a large media client a couple of years back and would like to share some of my learnings.

1. Brand advertising vs. lead generation are distinctly different. 

2. In brand advertising, 

a) the attribution chain from impression to transaction is very fuzzy and not measurable. 

b) The value of qualified vs. unqualified impression can vary from same ( mass market product in brand building mode) to 10 X (presidential campaign trying to reach undecided independents 10 days before voting day) depending on context. 

3. In lead generation, Joyce is indeed correct that a qualified lead is worth its weight in gold. Which is why google generates $120 M revenue every day. 

4. Customers are not interested in selecting ads they would like. They really don't give a damn and it is not a "job" they want to do. They may do it when forced to ( like in the case of watching Hulu) but any business built on the assumption of customers self selecting advertising interests is not realistic. 

5. As much as we all love intent-casting, it is really not clear to me that a new service can achieve the scope and scale to perform the role of a generic demand aggregator. Making liquid markets across categories is pretty damn hard. 

6. It is more conceivable to think of smaller ( but still huge) plays where customer demand pulls supply in real-time. Like ordering a taxi (uber), ordering a private jet (blackjet), renting a tuxedo ( blacktux), getting legal help (upcounsel) etc. In each of these categories, the demand-supply dance is being orchestrated in a beautiful dance. When operating at scale, the new model will be 10x better and will eliminate or minimize the need for marketing done in the traditional sense.

7. In the long-term, as individual markets get efficient with collecting demand, they may not see as much value in investing in "spray and pray" marketing and creepy advertising based on crude cookie based guesses. But it does seem a long journey from here to there, market by market.

regards, AJ

On Tue, Mar 18, 2014 at 1:35 PM, Jim Bursch < " target="_blank"> > wrote:

The problem is that in order for the customer to pick the ads they like to see, they have to sort through a lot of ads they don't like.

What's needed is a system that does the following:

1. Sort ads to maximize the probability that the customer will see ads they like (i.e. targeting based on customer-provided and customer-controlled data).
2. Enable customer feedback to learn what is, in fact, liked and disliked by the customer.

In such a system there is risk -- there is risk that the customer will see an ad that they don't like (it's irrelevant, untimely, ugly, whatever), thus wasting the customers time and attention. The burden of that risk needs to be placed on the advertiser. In other words, the advertiser needs to pay a risk premium which compensates the consumer for wasted time/attention when their ad misses the mark.

Hmmm... if only someone could build such a such a system. Wait! Someone has! It's call MyMindshare.com.

Jim Bursch
310-869-5340
" target="_blank">
@jimbursch

On 3/18/2014 10:36 AM, Johannes Ernst wrote:

If this is even remotely right, may I ask what we are all doing here?

Why aren't we busy setting up ad servers which are doing what ad servers do, except that the customer picks what ads they like to see?

Ad serving very clearly is a business. Stands to reason that thus ad serving at 3, 5, 10 or 10,000 times the revenue per ad is a business, too.

(If you build this, would love to bundle it on Indie Box)

On Mar 18, 2014, at 7:35, Joyce Searls < " target="_blank"> > wrote:

Way off. More like 5-10,000 times as much or more, depending on how it's qualified.
Qualified leads are less like advertising and more like commission.

Joyce

On Mar 17, 2014, at 5:21 PM, Johannes Ernst < " target="_blank"> > wrote:

Somebody on this list might know this ...

What is the relationship between the value (to an advertiser) of a qualified lead vs. an unqualified lead?

E.g. how much more might a car company pay to put an ad in front of me if I am looking to buy a new car in the next month, vs. me not looking?

If I guessed "three times as much" would my guess be totally off?

Thanks, and cheers,


Johannes.

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