[e-gold-list] Re: Advertising on the spend page

[jpm]

Here's what I perceive to be the fundamental problem with this idea:

I order some widgets from Bob's Kickass Discount Widgets. Bob has paid for
the development and maintenance of his web site, and

so far so good ...


 maybe he paid for some
television ads (very expensive)

but he wouldn't have done that; he would have used banner ads on the 
e-gold page, or, this mailing list.

that would have been a stupid business decision!  :)


 that got my attention and brought me to his
web site. Now his investment starts to pay off as I click him some grams.
Super.

But wait, when I get to the confirmation page I see a banner ad for Joe
Blow's Super Duper Discount Widgets.

Excellent.


I decide I'd better do some comparison
shopping before I confirm that spend. What do you know? Joe Blow's prices
are lower. Why are they lower?

Because he's a better businessman, ie, he runs a more efficient business!



 Is it because he runs a more efficient
business?

Yes - exactly!   His competitors are so dumb they are buying *TV 
ADS*, for god's sake.

Obviously, with all products and services, the (vast) majority of 
what you are paying for is marketing.  In the example, Bob is 
incompetent.

Anyone who is that incompetent at the marketing (ie, major, central) 
part of their business, probably isn't even any good at the other 
minor sections that you are paying for, like tax management, employee 
relations, systems developments, product manufacturing, legal and 
liability management and so on.



No, it's because he didn't have the overhead cost of that
expensive advertising campaign.

Bob's KDW spent all the money on development and marketing,

Au contraire, you said that he blew all the money on an incredibly 
expensive TV campaign.

Here's the perfect example:

Bananagold spend $25 million on some TV ads -- what the heck do you 
think would happen to bananagold.com ??  poof! :)




 and Joe Blow got
to piggy-back off of it by buying just one banner ad that he knew would be
seen by all of Bob's customers. Joe Blow's merchandise is cheaper only
because he is able to foist virtually all of his advertising costs onto
Bob's KDW. This is at most one step removed from simple theft.

And no, I do not think it an unlikely scenario, especially as e-gold grows.




- - - - - - - - - - - - - - - - - - - - - - - -

Advertising is commercial grease, oil, silicon
spray to commerce. - Bob Nugent


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[e-gold-list] Re: Advertising on the spend page

[Samuel Mc Kee]

 but he wouldn't have done that; he would have used banner ads on the
 e-gold page, or, this mailing list.

 that would have been a stupid business decision!  :)

Lots of web sites use television advertising.

  Is it because he runs a more efficient
 business?

 Yes - exactly!   His competitors are so dumb they are buying *TV
 ADS*, for god's sake.

Firstly, whether or not TV ads are a good medium is irrelevant. Lots of web
sites use them, and whether or not they work well today they could work very
well ten years from now when virtually all TV viewers have internet access.
But again, the medium is beside the point. The point is Bob's KDW spent
money on marketing, and now their efforts are bringing customers to Joe
Blow. The fact that this could happen will cause Bob to insist on one of
three things happening:

1. The spend page not have ads for his competitors, or
2. The shopping cart interface not take the customer to the e-gold site at
all, or
3. His business not accept e-gold at all.

Number three it is.


 Obviously, with all products and services, the (vast) majority of

 what you are paying for is marketing.  In the example, Bob is
 incompetent.

My example was to show the scenario with which Bob would be faced and why he
would obviously not accept e-gold. I don't think I could have made that
point any more painfully obvious.

 Bob's KDW spent all the money on development and marketing,

 Au contraire, you said that he blew all the money on an incredibly
 expensive TV campaign.

Again, a red herring.


 Here's the perfect example:

 Bananagold spend $25 million on some TV ads -- what the heck do you
 think would happen to bananagold.com ??  poof! :)

Once again, a red herring, utterly irrelevant to anything I said.

As long as a business's shopping cart shows customers an ad for a competing
business, no sane businessperson is going to want to accept e-gold. If all
his marketing efforts are going to be used to direct customers to a
competitor who has spent relatively little on marketing, then he can either
not bother with marketing and go out of business or stop accepting e-gold.
No way is this going to fly with a serious business.



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