AM: Ryan Phillips response to Customer Acquisition via the Web
Enclosed is Ryan Phillips response to Bill Robin's original
question about Customer Acquisition via the Web. Ryan is
publisher of the Journal Newspaper chain-
Ryan Phillips responds:
> It is a short answer and I don't think Bill will like the answer.
> If the Wall Street Journal, New York Times, LA Times ,
> Boston Globe, Omaha World Herald Cleveland Plain Dealer,
> Miami Herald, Seattle Times ETC ETC ETC can't make money,
> or more specifically are loosing, combined, tens of millions of
> dollars every year providing online content I can't see any small
> provider making any money.
> It has been my experence that any good service that is on the
> internet is started with the idea that you give it away first and
> then I'll charge for it when it gets popular.
> Then 2 seconds after you start charging some other company
> starts a identical service for free because they are going to get
> popular and then start charging. Look at search engines
> Yahoo was first now there are 50 search engines.
> I suggest you tie the product to something tangable. Either a
> print product or a fax product newsletter etc. People just
> expect information on the internet to be free, and the expect
> to pay for it when its comes in hard copy.
> If you must try an advertising campaign Newspapers are the
> most effective solution on the Planet and are getting
> more effective every day. There are only 3 Daily Newspapers
> in Washington DC area, over 50 RadioStations (ask strangers
> what station they listen to you'll get 50 different answers.then
> ask what the last commercial they heard was, they won't
> Television is more fragmented with 100+ cable
> and broadcast options expensive to produce spots also.
> Direct mail is predictable with the average good response
> piece used with a good list pulling in a .005 response.
> If your gonna do it use a mix of Newspaper and Direct mail.
> Broadcast is just to spotty for the small and medium guy.
> Be prepared to spend alot of money and pray you have
> information that people are willing to pay for and no one
> else can give away.
Bill Robins writes:
> NetResponse is an internet consulting and development agency. One of
> our clients is in the midst of planning an aggressive customer
> acquisition campaign. The client is a web based publication, which
> recently migrated to a subscription model.
> Thus far, banner ads have not been a cost effective channel. I was
> wondering what experiences, thoughts, or recommendations people had in
> regards to alternative customer acquisition vehicles.
> We are looking at list rental for direct email, text ads on email lists,
> and sponsorships, as well as testing off line advertising mechanisms
> (direct mail, print, and local NPR).