Want to try a fun exercise? Want to stay ahead of potential competition?
On the plane ride home last week I began wondering how many businesses could be replaced with an ad supported model. Obviously there are all the online businesses, that’s easy. Try and imagine your business or some aspect (usually one of the most profitable pieces) and conceptually build a competitor that gives the product or service away for free in exchange for advertising.
Think there are some businesses that can’t be effected? Think again. Have you ever moved into a new subdivision? If so you may have been approached by ADT or some other home security system company willing to install the alarm in your home for free in exchange for the rights to put a sign in your yard. What is this? Ad supported security.
Sure you’re saying “they only do that for one home a neighborhood.” Instead of a yard sign they could offer to install a free system and in exchange you would hear a small advertisement everytime you entered your home or set the alarm.
Seem far fetched? Maybe, but ten years ago do you think newspapers would have thought Craigs list could take away one of the most profitable parts of their business?
What if instead of some small startup it was Google? Do you think the cell phone companies are worried about the Gphone? They should be. Google could do it with cell phones . And why stop there? Why not laptops or mp3 players?
Have you seen this yet in Google?
It’s your browsing history. (Okay actually it’s mine, but you have one too.) Let me play out another scenario for you.
(phone rings)
Hello Trusty Bobs Tow service.
Yeah I need a tow truck.
What’s the cell # your calling from?
555-555-5555
Mr Anderson?
Yes.
Would you be interested in me checking your public search history to see if you qualify for a discount?
Uh.. sure?
Great. (clicking of keyboard) I see that you’ve looked at 8 different car sites over the last two months. Are you looking for a new car?
Yes, actually I am.
We have a partnership with your local Toyota dealer. We could bring out a new Tacoma or Scion for you to drive until your car is fixed and they’ll even pick up the tow charge. Would you be interested in this deal?
Yeah, that sounds great.
Does that sound so far fetched? It doesn’t to me. To be fair I stole the tow truck Idea from Greg Stielstra and just added in the search history piece.
When you add in search history, you add intent to purchase. A car dealer randomly sending out cars with tow trucks may or may not make sense, but a car dealer letting a person who’s been activley shopping for a car test drive one of yours for a few days when they really need one doesn’t sound so crazy does it?
What about your business? Think it couldn’t be done?
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I always thought that courier services should have their cars wrapped and messenger people decked with adverts like Nascar.
The conceptual association with Nascar (fast!) would boost business and advertisements could allow them to lower their cost of their services.