NONE: RE: ONLINE-ADS>> 1:1 marketing, PowerAgent and The Future.
RE: ONLINE-ADS>> 1:1 marketing, PowerAgent and The Future.
Robert Grosshandler (rob_at_eyegive.com)
Mon, 15 Sep 1997 09:48:05 -0500
Mark Dolley raised a series of questions regarding PowerAgent and database
marketing in general, here's my particular take.
1. It may be a bit premature to write off PowerAgent. The negotiations
that go on between a company and backers (or potential backers) can get
pretty interesting - requiring some interesting tactics to maximize
position.
2. Database marketing (1:1) is "merely" an extension of what direct
mailers have been doing for many years. Theoretically, the 'Net provides
an ideal intersection between content and the targeting based upon either /
both demonstrated behavior or expressed preferences.
3. The question of whether or not the small amount of money one earns at
CyberGold or PowerAgent is sufficient to entice the "right" consumers is a
very good one. Based upon our trials in the first quarter of this year, we
don't think so.
4. Mark asks about the form factor (PowerAgent apparently uses a second
browser window). Our research indicates that individuals do not like
interruptions to the task at hand. This applies to interstitials, separate
windows, etc. The mere perception of an interruption or delay isn't good,
so either the offer must be great, or the interruption minimized.
5. Field of Dreams time - what PowerAgent's apparent problems tell us is
that money does not buy necessarily buy success. It takes an awfully large
business to justify the capital investment that PowerAgent has had, and
even larger business to justify the additional money they are seeking.
This is probably the source of the friction over valuation. Consider the
plight of the poor VC, asked to invest in this round. How large does the
business need to be in order for that VC to get a return. How much equity
is left for the entrepreneurs who sweated the business over the last three
years. Not a fun negotiation.
A little background on eyegive might help. We create personalized home
pages for members who want to use their time on the 'Net to "do good". Our
home pages consist of full-page ads, and at least half our revenues go to
our members' favorite nonprofits. We're creating millions of markets and
communities, one page at a time. Feel free to visit, we're publiclicy
launching the end of the month.
Robert Grosshandler
eyegive
millions from millions for their favority worthy cause
Do Good ... Go Surf
http://www.eyegive.com
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