Wednesday, July 6, 2011

Start-Up Watch COD: Inadco Delivers CPL at CPM Scale

Performance is the name of the game in interactive media – it’s one of the key reasons why digital’s growing faster than any other class of communications. But what we consider performance is evolving. While we used to live and die by the click, more and more companies are recognizing that we need to focus on business-relevant end results – performance that doesn’t always correlate with clicks.

Inadco is a start-up focused on delivering massive scale in business leads by converting standard banner units into lead collection “machines” that improve the number and rate at which real prospects are delivered to businesses. There’s a simple formula to this, but the most powerful ideas are almost always the simplest. Instead of driving people to websites and landing pages to collect contact information, Inadco delivers IAB-sized collection units across the web to environments with a high degree of likelihood to attract your prime customer types.

They assume the “risk” of this distributed lead collection system, by creating the units and paying the pubs that run the collector units. You pay on a cost per lead basis, so the performance risk falls on others.

They are betting – and winning – on the premise that their expertise in driving user response will make the process profitable.

Inadco says that the leads they generate are demonstrated to be high quality, and that this value is enhanced by three core business principles:

1.They are highly adept at identifying the best publishers on which to reach your audience
2.Leads are collected with forms that carry your branding, so respondents know who will be contacting them for follow-up. In other words, no surprises that might reduce closability
3.Their technology filters out respondes that are clearly of no value, so you aren’t purchasing information on people you have no ability to close
For publishers, Inadco promises that its form units drive significantly higher yield than standard ads. Pubs are paid on a bounty per qualified lead basis, and the revenue generated usually exceeds that made possible by CPM or CPC ad pricing.

Because the bounty per qualified lead can be relatively high, pubs are incented to deliver these units in locations and environments with a higher probability to deliver a qualified response. There’s a somewhat higher risk for a pub versus CPM, but as we all know most pubs simply cannot deliver the breadth and depth of content they want to under the existing CPM environment. With increased risk (usually) comes increased return.

As I said earlier, it’s simple, and that’s one of the things that makes it so powerful. The streamlining of the leads process is dramatic. No creative costs for you, no landing page development, no creative testing, no message testing. They manage all that, and can (they hope) do it better than you because they have so much experience in this field.

If leads are your business currency, you should definitely give them the onceover.

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