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The problem might just be that the market isn't properly pricing intent generation right now, and because of that companies can exploit that price gap and purch
by albertsun 17y ago
The problem might just be that the market isn't properly pricing intent generation right now, and because of that companies can exploit that price gap and purchase a lot of intent generation advertising relatively cheaply.
Apple is a good example of this. They seem to spend a lot on intent generation advertising: TV ads, major branding campaigns on nytimes.com, prominent billboards, etc. All this works to make people want to buy Apple products.
However, this can only work for products where the advertiser monopolizes a product that is differentiated enough. For example, no company has an incentive to pay for intent generation for travel to Hawaii, because no company can capture all the profits from more people going to Hawaii. Someone after getting the idea to go to Hawaii will be just as likely to purchase from a competitor.
I think over time, as we get better at measuring the impact of intent generation, we will see more and more spend on that kind of advertising and rates will rise as companies that decide to spend on intent generating advertising do better.
- rokhayakebe 17y agoThen competitors, and complementary businesses, should stop fighting and come together, market together and increase both their chances at making more money. Example: Hawaiian rental car companies, hotels and airlines serving the region should have a % of their marketing budget pulled together to promote going to Hawaii.
- bensummers 17y agoI believe these things are called Tourist Boards, but are paid for by taxes. For example, http://www.enjoyengland.com/ http://www.enjoyengland.com/
- tristan_juricek 17y agoI've had similar thoughts, where small businesses in a local region could pool resources to help each other. For example, a music school could offer notifications that contained links to regional performances in locations. A veterinary office could provide reminder emails alongside references to local trainers or other kinds of pet services. I see some kind of business in there, I just don't know exactly how it would work.