Back In the Saddle

It’s been a few months but I’m back in the blogging groove. There’s been a lot going on.  We continue to make good progress growing our lead generation businerss based on search. The market continues to be complicated with Google dominating search.  The strategy Google alluded to more than a year ago as a potential fix for their ever increasing query volume but ever decreasing average price per click seems to be paying off. Clicks targeting a product or service and a locality (think plumber San Diego) continue to climb. As you may know we focus on an ROI based approach where we purchase and manage exposure through our platforms and turn that exposure into results we get paid for. Search is central to that. Other media represent additional opportunity. Display advertising can now be readily targeted to locality but in our (and others) testing display has proved pretty disappointing in attracting end users who are looking for that specific product or service and are ready to “call now.” Social media is more encouraging and certainly more effective than straight display but again it lacks the immediacy of search. The traditional high bounty markets (insurance, home security health) remain strong but the major brands are getting increasingly sensitive to how and where they are exposed to media which again makes the right kind of targeting trickier than it used to be.

Against this changing and challenging background we have seen a couple of dramatic changes in our society which are overlapping into our world. As you probably noticed the US has acquired a significant new problem in prescription drug abuse leading to heroin addiction in many cases. More people are dying from drug overdose than road traffic accidents. It’s a fairly recent change and it’s one that has impacted a much wider range of Americans than the cliché drug addict.  It’s a horrific and growing problem. The rules governing insurance were changed a couple of years ago with the goal of treating ‘behavioral health’ like any other chronic condition. If you ask any recovery facility how that’s working you will likely get a very angry answer. It’s not working well, yet…but it is better than it used to be with about 85% of recovery treatment costs being paid by insurers. What’s interesting here is that the entire process of finding the right kind of facility, matching it to the patients insurance and ability to cover any copayments is an arduous and time consuming mess. This industry is just about where hotels were ten years ago. The other point of note is that the process of finding help is done through search but transacted largely over the phone. People call facilities and facilities talk through their options. It’s search driven pay per call with very large bounties, much larger than traditional industries. We see this as a great fit for our platform and expertise and we are pursuing an initiative to address this rapidly expanding market. I’ll keep you posted on progress.

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