Wednesday, June 25, 2008

Vendor Relationship Management and it's Impact on What We Do

Hey MT,

I've been watching some initiatives within Vendor Relationship Management (VRM), which is basically a movement to enable customers to have more control in managing their relationships with companies selling them products and services. The idea is very much tied to the data portability movement and is increasingly being tied to pay-for-performance marketing. There are obvious benefits of VRM and data portability to customers --> check out some of the justifications from an advertiser's economic perspective and how that ties back to what we do.

...at least $1B of what's spent on online advertising is completely wasted and is unsustainable. Advertisers are going to eventually wake up and recognize that unless it's a highly visible placement, banners get you largely nowhere.

http://www.micropersuasion.com/2008/04/study-a-billion.html?cid=112696184#comment-112696184

The Cost-Per-Action/Pay-for-Performance business model of Affiliate Marketing is likely to continue to transform the ad industry, significantly reducing billions in unnecessary expenses, including the $1B wasted on unseen display ads in Rubel’s analysis.

http://blog.joeandrieu.com/2008/04/30/running-the-numbers/

Just food for thought!

Check out more on VRM here: http://cyber.law.harvard.edu/projectvrm/Main_Page

1 comment:

Graham said...

Have a look at http://blog.grahamsadd to see my view of VRM particularly the article on 'VRM - Threat or Opportunity for CRM?'.
VRM moves the consumer from the 'attention' economy (spam) to the 'intention economy' (hot prospects) to the benefit of both buyer and seller.