As many of you know, our business at OnCard Marketing revolves around the marketing of promotions to consumers to drive sales. An irony here is that with a team of all guys, none of us use coupons on a regular basis, if at all. We constantly joke that it?
Archive for April 2008
I recently came across a blog post from Fred Wilson over at Union Square Ventures, found here, talking about the fact that online advertising actually underestimates the ROI of the campaign because there is almost always a positive, but unmeasurable, impact of online advertising on off-line sales. Fred is curious if there is a company that can create a closed-loop technology and tracking solution to help quantify that missing ROI link between online advertising and the real ROI. Ironically, that’s exactly what OnCard is doing. He just needs to check out our website at www.oncardmarketing.com to see that this is a problem we’ve been tackling for months. We’d be happy to talk with him (and anybody else who is interested) about our solution and why we think it is invaluable to our advertising clients.
So I discussed in several previous posts my thoughts (and questions) regarding traditional media and the need for them to change their model to charge advertisers when the advertising works, however it may be defined. The question is how would this work and would the traditional media guys go for it? Answer: probably not, at least not without lots of proof that it works. My belief is that there is an opportunity to add value to advertisers who can’t afford to roll the dice, pay up-front and wait for the response. This entire idea is premised upon the ability to measure what the response is on sales via a specific marketing channel. Direct marketing is obviously the best example here. It’s rather easy to see how a direct mail campaign worked based on redemptions with a unique coupon code. It’s trickier to measure things like print advertisements in a newspaper or magazine, radio, billboards etc. If you can measure the responses to the marketing message, you can determine how effective the campaign was and therefore measure ROI. However, response rates will fluctuate based on many factors, including what the offer is and what the creative looks like just to name a couple. So, my point is that depending on all the factors that determine campaign effectiveness, ROI is far from guaranteed for the advertiser. My question to advertisers out there is simple. What would it take for you to pay your agencies and media buyers for the measurable success they provide? I understand that this won’t be popular among traditional media folks, but I wonder how many agencies would bite if you could show them that taking on some of the advertising risk could produce significantly higher returns.