New ad networks and platforms will innovate to stay ahead
July 9, 2010
We are hearing reports of 11% CTRs for the first wave of Apple iAds that have appeared on various applications, then there’s this from foursquare..
“ our friends at Monique’s Chocolates in Palo Alto have acquired over 50 new customers and saw well over 100 redemptions as a result of running a Special Offer over the past seven weeks:
owner of Monique’s, Mark, also told us that he is running the same
Special in his local newspaper (cost of ad = $300!) and has acquired
only one customer with one redemption from that print ad. He adds that
for those who redeem the Special via foursquare “more than 25% return
regularly to get something, to Check in, to see who the mayor is…the
gaming part of foursquare really does resonate with people and we’re
excited about it!”
OK, it’s a tiny chocolate store, but there are also stories of Starbucks having similar levels of success on a much bigger scale.
While “new” these new platforms are achieving high levels of success because of the novelty factor, they have a huge advantage over their traditional ad competitors in that they can keep innovating, it’s in their blood.
We are seeing new developments from foursquare that seek to evolve their existing program model. Then you’ve got Twitter, long seen as shy in its desire for revenue, coming up with a real interesting idea around promotions, Earlybird.
What these guys can’t afford to do is stop, there will be no time to rest on their laurels of success because the novelty value will soon fade. They have to harness their core culture of innovation to perpetually ensure their experiences and their advertising/promotional experiences are constantly refreshed and kept interesting.
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