Do VC’s understand this performance-marketing stuff?

Short answer: NO Longer Answer: I’ve been giving a lot of thought to this topic as I go to various online marketing conferences and network with business partners and professionals from the investment community. In general, I feel like the investment community that focuses on digital media still does not understand pay-for-performance marketing, which is by all means a subset of the vast digital media universe. The good news is that it’s growing at a phenomenal pace, especially as traditional advertisers are not paying the same CPM rates for banner ads that they once did. These advertisers are looking for better bang for their buck and more effective ways to drive ROI. I came across a great blog post by a friend of mine, Sam Harrelson, which can be found here.http://www.costpernews.com/archives/the-valley-still-doesnt-get-performance-marketing/ It talks about a similar dynamic, which only begins to explain why VC investors, who are supposed to be some of the smartest money guys out there, do not and cannot wrap their heads around why pay-for-performance marketing is a huge opportunity, especially in today’s day and age. Check it out if you get the chance.

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