Mark Gritter (markgritter) wrote,
Mark Gritter

If it sounds like spam, it shouldn't be your business plan

The latest Tech.MN startup profile is on The AdSight. While the "green" spin is a novel addition, this is yet another Get Paid to Watch Ads startup. They've been tried before, and they don't work. Russel Buckley nails it: "The paying-people-to-view-ads model is the vampire of digital marketing."

(It's only slightly less obnoxious than the paying-people-to-serve-ads-to-their-friends model.)

I'm not able to connect the dots to "getting less junk mail". I'm pretty sure direct mail costs are significantly less than $1.00 per impression. One online tool quoted $0.59 per standard-sized letter, and these responses confirm a sub-$1 price. But even at a lower price point, is it more likely that an AdSight campaign would replace a direct mail campaign, or augment it? Would Athleta, for example, stop sending my house catalogs? It is hard to see how it is in their interest to do so--- the integration costs alone to prune the mailing list could easily exceed any cost savings. (There is a large fixed cost to design and printing, so even a relatively expensive mailing may have small marginal costs.)

I don't see what The AdSight can bring to this market that is different from Jingit (another Twin Cities startup), ClixSense, Beezag, or Brightspot (remember them? no?).
Tags: advertising, rant, startup
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