Just an Online Minute... Web-Based Coupons
The concept is fairly simple - it's a web-based delivery system that gives advertisers the ability to reach consumers online with coupons while allowing consumers to choose when and how they will receive these offers. A regular 468x60 website banner invites a customer to receive a coupon for a free or discounted something. The customer enters his wireless phone number into the banner and immediately receives the coupon as a text message on his cell phone to use immediately or save for later.
Alternatively, the coupon may be printed out, sent to a specified email address or forwarded to friends - an extra viral twist. Campaigns are geo-targeted across specific cities, states and regions and advertisers pay only if the coupon is clicked, which means it has been virtually hand- delivered to the interested end user. And since we're dealing with the Internet, advertisers get real-time analysis of their coupon campaigns. According to the firm's CEO, Scott Ferber, they're "not looking to make billions" from this new technology, just satisfying their clients' requests.
If it sounds simple, it is. Ferber said, it took them about 4 weeks to develop the technology from already existing services the company offers. Advertising.com, as you may remember from last year, was one of the pioneers of pay-for- performance pricing and online ad campaign optimization.
The simplicity of the vehicle obviously makes it a natural alternative to what traditional advertisers are already very comfortable with - coupons - and at 70 cents to a dollar per click, Advertising.com makes it cheaper and more convenient to distribute them.
There's only one catch: for this whole thing to work at all, someone's got to click on the banners. And with click rates where they are, that's a tall order. But I'll keep you posted.