Wow -- I have to say that this is the most
spot-on assessment of the business challenge
facing VRM that I have ever seen on this list.
#4 is the primary objection that I face in making the case for
MyMindshare, and here is my counter-argument:
"Customers are not interested in selecting ads they would like."
This is false. If you place anything that someone likes in front
of them, they will select it. Period. For it to be otherwise, you
have to qualify the statement. Also, people will SEEK things they
like, as long as the benefit outweighs the cost. This includes
ads.
"They really don't give a damn and it is not a "job" they want to
do."
This is generally true of ads, but not true of ads people like.
The term "job" implies a cost (in time/effort). It is absolutely
true that if the cost of seeking an ad exceeds the benefit, then
it's not a job that anyone wants.
"They may do it when forced to ( like in the case of watching
Hulu) "
Here I would posit two counter examples: Super Bowl ads and coupon
clipping.
"any business built on the assumption of customers self selecting
advertising interests is not realistic"
This needs to be qualified: any business built SOLELY on the
assumption of customers self selecting advertising interests is
not realistic.
MyMindshare is a commercial messaging system that connects
advertisers which customers in a mutually valuable manner -- I
call it Twitter with an eBay business model.
Note that I substitute the term "advertising" with "commercial
message."
Jim Bursch
310-869-5340
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@jimbursch
On 3/18/2014 2:35 PM, Anandan Jayaraman wrote:
"
type="cite">
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
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