The years of 2005-2007 saw a lot of activity in the mortgage refinance market, as we know, and a big part of that was the explosion of internet advertising in the US about it including the lead generation market. Here’s a clip from a NetRatings press release in January 2006 showing the top online display advertisers in the US:
Top 10 Advertisers by Estimated Spending
Advertiser* Total Estimated Spending Impressions (000)
_______________________________________________________________________
Vonage Holdings Corp $36,574,400 14,954,696
_______________________________________________________________________
Netflix, Inc. $16,770,200 5,042,750
_______________________________________________________________________
United Online, Inc. $13,588,500 3,383,704
_______________________________________________________________________
NexTag.com $12,557,100 3,517,763
_______________________________________________________________________
LowerMyBills.com, Inc. $12,470,400 2,580,703
_______________________________________________________________________
BellSouth Corporation $11,593,400 3,139,830
_______________________________________________________________________
Verizon Communications,
Inc. $10,346,400 2,979,028
_______________________________________________________________________
InterActiveCorp $9,261,900 2,307,974
_______________________________________________________________________
General Motors Corporation $9,260,900 1,749,433
_______________________________________________________________________
Scottrade, Inc. $8,655,200 1,866,586
_______________________________________________________________________
Estimated spending reflects CPM-based advertising only, and excludes search-based advertising, paid fee services, performance-based campaigns, sponsorships, barters, partnership advertising, advertorials, promotions, email and direct response. Impressions reported exclude house ads, which are ads that run on an advertiser’s own or related Web property and co-branding relationships.
Numbers 4, 5 and 8 above were mortgage advertisers. NexTag (my former employer), LowerMybills and LendingTree (InterActiveCorp in the list above) were not spending as much as the amounts above, perhaps 40-70% of these numbers would be about right depending on the month – but even if we assume 50% of the $35 million here between these three providers, we’re looking at about $17 million or more in a single month (January 2006). That’s pretty amazing. What has changed since then? Well, some the big spenders in display today are Groupon and LivingSocial, and a raft of me-too competitors. Unfortunately, Nielsen’s AdRelevance is a severely broken product and they don’t put out these kinds of press releases as much any more because the data is just way too unreliable.
Mortgage refinance aggregators like LendingTree, LowerMyBills (“LMB”) and NexTag used to advertise the idea of “four offers from competing lenders” which was a nuance in that the lenders were competing with each other not on how good of an offer they could give the consumer, but really based on how much they would pay the intermediary for sending them the lead. As you can imagine, the vendors able to pay more money were the ones that were making more money and often this was via lower monthly cost sub-prime mortgage deals.
In a nutshell though, here are some interesting similarities between these two sets of online advertising programs as they have existed 4-5 years ago (mortgage) and today (and I would argue these were the first advertisers to use banner/display advertising at real scale include the biggest placements on the Web like MSN/Yahoo! front pages for direct response campaigns profitably):
The mortgage refinance business is very different today, as we know, driven largely by a lot of macro factors. I don’t believe the local deal/merchant game will see the same degree of fall-out, because it’s more diverse and there is more depth and variety compared to the banks and brokers, but certainly there will be fall-out and consumer burn-out. The valuation and prospects of companies like Groupon are almost certainly overhyped, as these businesses are more about being marketing engines today than having truly innovative products… but they are still creating some meaningful new consumer value — which I believe is a lot different (for the most part) compared with the lead aggregators who were mostly just masterful at marketing.
I’m not sure I understand why I’m seeing double - are these sponsored stories (a new ad unit created by Facebook that just basically shows up when a friend of yours likes a brand that is advertising on Facebook) that good, that I need to see two of them per this image? Is American Express really that great of a brand that they should get double mention here? I’d love to know how/why this happens…
Something important I’m collaborating on with a couple of other tech people is a Facebook page called “Give, Don’t Get”. The idea is that instead of buying something you would like but don’t really need (like an iPad 2 if you already have an iPad for example) – you’ll instead donate that money to a good cause. Hopefully this page will live on and support all kinds of causes: for right now the main one we’re emphasizing is the Save the Children Japan Earthquake Tsunami Children in Emergency Fund.
Anything helps: just identify something you would have otherwise bought and donate that amount to the charity, and post about it in your social media streams.
1) Figure out how much you want to give, then go to Red Cross or Save the Children (http://bit.ly/givenotget)
3) Visit http://on.fb.me/gAVWhA and post your screenshot to the page’s wall
Give, Don’t Get – Gave: $xxx to Save the Children (Japanese Earthquake Fund). Didn’t Get: xxxxxx. Visit: http://on.fb.me/gAVWhA
for example:
Give, Don’t Get – Gave: $10 to Save the Children (Japanese Earthquake Fund). Didn’t Get: 2 Large Starbucks Lattes. Visit: http://on.fb.me/gAVWhA
Please share this message with other friends and family as well.
XA.net will be running optim.al ads on Facebook for this page as well as a donation, so please even if you choose not to donate please go and like the page today if you can. http://on.fb.me/gAVWhA
This has been an interesting week for messaging and communications – I had business development chats via LinkedIn messages (obvious), Facebook, Twitter (direct messages), Quora and via a chat in a game of Words with Friends. Of course this is in addition to IMs and emails, and of course the ubiquitous SMS messages we all trade in large numbers these days.
There are quite a few socially-connected services with messaging components; and it is sometimes difficult to keep all of it well coordinated. Of course there are services like Threadsy that “pull things together” for you but the configuration/lining up of all these things is going to be time consuming and probably kills adoption on the user level. Oh well.
Facebook user penetration – percentage of users for each country as a share of the total population. The US doesn’t crack the top 10, but is the biggest overall source of Facebook users with over 146 million now. Conspicuous by its position at the bottom of the list, of course, is China.
Source of the data is http://optim.al
The bigger ad units were supposed to be the savior of display advertising, but I guess you can’t always account for physical placement. Here’s a nice one. Two 300×600 ads side by side below the fold – a marketer’s dream! Here you go IBM (for Lotus product), check out your ads running on InformationWeek.com:
Sometimes b2b sites have really press releases with no date to provide context to them – for example this one about Media Metrix acquiring AdRelevance is REALLY OLD, but has no date on it.
Maybe there should be a standard way of timestamping data and versioning it – kind of like a wikipedia-track-changes for the web. Google is probably building this now.
Here’s a trick it seems that catalog mailers are pulling these days – I added our name/address to the “do not send catalogs” DMA list a while back and the enormous number of catalogs we had been receiving slowed to a trickle. We recently moved, however, and now all of a sudden we receive the catalogs again: NOT forwarded from our old address, but sent directly to our new address – - funnily enough they all say “to R. Leathern or Current Resident”. And yet they are all pretty niche, targeted mailings – we’re not talking very general catalogs like J.Crew or Lands End. Is this a loophole in the DMA’s mailing preference program? Annoying.
Crazy. Is all I can say about the terms I had to agree to in order to buy Disneyland tickets on the Disney website. How and why should it reference stock quote information in the terms when I want to buy a theme park ticket? Well perhaps cause they don’t want to manage multiple terms for various websites so sure why does it matter if it’s a transactional website vs. a sports site (ESPN) vs. a news website? Regardless of the content and needing to agree to a 12-page legal document shoved onto a website, isn’t there something just a little dishonest about this whole process? Here it is, outside of the 5 lines it gets shoved into on the disneyland.com website:
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Kickbacks, shmickbacks: The recent Techcrunch story about Publicis agencies being “highly incented” to work with Google products caused a bit of a ruffle – but honestly, why is this such a big deal? If it’s just a more formalized conveyor-belt version of the same “grease the wheels” vendor-agency and agency-client reality the industry (many industries really) has seen in the last 40 years, then its efficiency should be applauded. Plus I’m sure they wouldn’t be doing it unless it’s actually delivering lower costs and better service to the client, and that those can all be quantified specifically (and will be when some clients inevitably ask for it) down to the penny. The market may take its time, but eventually any company working as an agent of another that does not offer the best service possible at the lowest price will lose out to competitors who do. It will be easier for clients to switch agencies than agencies to switch their providers, it seems. The market may just take time but it is inevitable evolution.
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