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For "fix advertising," Munch on Me and Groupon were listed. I'm trying to figure out how these two companies have fixed advertising and I just can't. I don't ev
by MatthewB 15y ago
For "fix advertising," Munch on Me and Groupon were listed. I'm trying to figure out how these two companies have fixed advertising and I just can't. I don't even know why they are mentioned with regards to advertising.
There's still so much room for innovation in the advertising space. Advertiser's think that click through rate is the key metric for them, this is far from true. Click through rate just means the advertisement itself is compelling enough to garner a click. What about after the user clicks? Why are advertisers paying on a CPM basis when they are looking at CTR as the key metric? CTR means advertisers want people to visit a subsequent page and perform additional actions. Companies have tried to assign cost to these additional actions but have mostly been unsuccessful because it is extremely difficult to track. Google Adwords is better for this but people are moving away from standard search (in the long term at least) and it is still far from perfect. Also, there's enormous display inventory out there that needs to be disrupted.
I could go on for a while about advertising and I have some initial ideas for improvements of the online advertising model. I'm excited to talk to like-minded people at the YC ad innovation conference.
- knowtheory 15y agoWell, the author of the post isn't totally off the mark. Groupon and Living Social are lead generation services. They don't do advertising, but they are certainly marketing. The fact that there's even a term that's been coined for what they produce (bacn) says to me that they have indeed had an impact on the marketing/advertising space. Have they fixed advertising? I'd say no, but i think there are several arguments over definitions/semantics and questions about what constitutes "fixing" involved in assessing that claim.
- ZachPruckowski 15y agoI've learned about a fair few local services via Groupon and Living Social. They don't work for all products, but for the products they work for, I suspect they're more effective than advertising. I walked RIGHT BY a restaurant near my office twice a day for 8 months, but I finally tried when it was on Living Social's Instant Lunch. There are a few more restaurants where I work (Judiciary Square/Chinatown in DC) like that. It was more effective than if they had put up posters or billboards and way more effective than if they had gone even bigger with their advertising.
- robryan 15y agoThe new startup DoubleRecall fits under this heading as an attempt to redefine/"fix" advertising.
- MatthewB 15y agoChecked out double recall, seems interesting but at the same time it seems like a combination of in-line text ads and interstitials. I am sure it will catch people's attention having to type in a product name or words related to a product but I believe that will only annoy potential customers.
- robryan 15y agoI think it will to, depends on your value proposition, I see it working for an article I want to read because the minor inconvenience is worth it for the article. If what your producing is fairly low quality and available everywhere you will drip away a far larger % of users.