When Direct Marketers Attack
By Scott Rewick
I’m an ODM (Original Direct
Marketer). That means I’m over 35 years old, and have
seen everything from All-Advantage to CyberRebates, from
TshirtNews to Free Ipods. Having spent millions of dollars
in online advertising, I count myself amongst a growing
handful of folks that are worried where our industry is
headed. The CPA market is heading for a shakeup, and this
time it’s not likely to be pretty. What’s going on say you?
Many Direct Marketers that have used promotions to drive
revenue have gotten increasingly aggressive and desperate with
consumer offers. This is a recipe for pissed off consumers,
overworked customer service centers, and invites heavy
industry scrutiny. Sounds like a party.
Pushing the marketing envelope
seems to be a weekly occurrence. With our CPM branding,
friends jumping back into the market, and advertising rates
going up across most major channels, Direct Marketers have
grown increasingly desperate to create winning promotions.
What have they turned to? Promotions that push the limit of
believability and fair play. Gone are the days of the $50
Gift Card. They are being replaced by a free 43 inch Flat
Screen TV and $500 Gift Cards. How can they do this you may
ask yourself? Buried deep within the Terms and Conditions,
one realizes what’s required of the consumer. Do most
consumers check this out before offering up their email
address? Don’t bet on it. Consumers need only complete 6
separate marketing offers, 2 from each page, and then follow
the remainder of the confusing steps in order to be eligible
to receive their gift. The market now seems flooded with
marketers that are employing increasingly deceptive ways for
consumers to get rewarded. Bottom line here is that the
consumer is exceedingly unlikely ever to receive their gift,
you’ve probably sent one pissed off customer to the very
marketers that pay you for that lead, and we are inviting
FTC scrutiny.
The CPA Advertisers (along
with consumers) that support this industry are the ones
getting screwed. Many advertisers, in fact, have already
abandoned the CPA promotion market based on low quality
leads, and the customer service nightmare this type of
marketing creates. Most Advertisers have no say about what
promotions are being built on their behalf. Since the CPA
advertisers are the ones footing the bill, don’t you think they
should have a say in what type of promotions are being
built?
When does marketing cross the
line to straight out fraudulent? I don’t think we are too
far off. These types of marketers cross the line, and
threaten the health of our industry. Distribution channels
view Direct Marketers with suspicion, and have begun
clamping down on such promotions. Secondly, I’m predicting
a consumer revolt. Well intentioned consumers, only after
having surrendered their email address, and sending multiple
help emails, may actually never fully understand what was
required of them to receive their gift. Finally, we are
doing a disservice to the CPA Advertisers that keep this
industry alive. Sure, the Advertiser may get a new user,
but this is one pissed off user. Customer service centers
are barraged with consumers looking for their “$500 Gift
Card”. Consumers, now after feeling duped, will likely
cancel their service, and leave with a very bad taste in
their mouth. Finally, I believe its only a matter of time
before the FTC steps in, as this type of aggressive
marketing continues.
The future of our industry
hangs in the balance. From our friend Benjamin Franklin,
"We'll either hang together or
we'll hang separately" Our nascent industry can
either survive or flourish, or be ruined by increasingly
aggressive Direct Marketers who are out for the quick buck.
Which will it be? I’m not holding my breath. I’m still
waiting for my 43” flat screen television.
scott@yfdirect.com
