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February 09, 2007

Would Godaddy Find Radio Advertising Successful?

Godaddy was one of the only direct response-driven companies that advertised during the super bowl. As we noted in our recent post, we wondered whether those dollars were well spent.

It turns out that the CEO of Godaddy.com, Bob Parsons, has a blog, on which he boldly declares his ad a success. It's interesting to see how he does (and doesn't) define "success".

Nowhere in his definition are there any hard numbers, like "we achieved a customer acquisition cost of X", or "we achieved a cost per lead of y", or even just "we'll track $X in proft directly to the airing of that ad".

Instead, Bob points to things like the PR effects of the controversy, number of downloads, and market share. Market share is great, but why muddy the waters with market share - why not just say "hey, we paid $X and we generated $3X in revenue, resulting in a profit of $Y".

After all, you can grow market share and STILL BE UNPROFITABLE. (Oops, was that a Godaddy.com secret?).

Nevertheless, with these kinds of success metrics, we would certainly be able to show Godaddy a lot of great "results" in direct response radio. In fact, we'd blow their minds. I'm sure of it. Controversy, downloads, bragging rights, market share.... low hurdles compared to being held accountable for profitability.

Posted by Jeff Small & Brett Astor at 04:35 PM | Permalink