One of the major themes for 2010 is disruption. Its impacts can be both good and bad, an enabler for many and the end of business as they know it for others. Of the many disruptive forces impacting the world of online lead generation, none compares to Google’s decision to sell not just clicks but now leads to certain clients, a 180 from their decade old business model. What does Google’s Comparison Ads mean for the existing buyers and sellers of leads? Is it death to the short form as we know it or a catalyst for overall growth?

Moderator: James Cham, Vice President, Bessemer Venture Partners
Panelists: Marc Diana, Founder & CEO, LeadPoint
David Thacker, Associate Partner, Greylock Partners
Owen Raun, RMC Vangaurd.

What is Google thinking?

David – Google is trying to improve the consumer experience. ( I call BS on this. As if Google was actually looking out for the greater good.) Comparison Ads is also supposed to improve the advertisers experience too.

What is the eco-system get affected?

Marc – You have a consumer,  publisher and direct marketer. Googles play changes is it for the positive. All players will benefit from the a better Google experience. (Not sure how this makes any sense for non-google advertisers.) LeadPoint sits in the middle and Google plays in LeadPoints model, because there will be more leads. (?)

Dave – Those that continue to advance will be fine in the eco system. Companies that continue to improve the consumer experience will succeed. Google still does not provide content and this is an area for companies to gain market share. Companies should be diversified to where they receive traffic. If your business is 100% reliant on Google, you may have a problem.

Owen – It is a little too early to tell how this affect his business. It possible that Google will push out poor sources. Also, this is not the death of the short form, but rather the short form is only getting shorter.

What are the blind spots of the Comparison Ads?

Marc – This is the first product that is in Googles core revenue stream. I believe that Google has done serious due diligence. It is highly disruptive to their search advertisers and is a risky play. they must know that it is going to work.

Dave – Froogle was said to displace other shopping comparison sites, but it didn’t. Googles Comparison Ads will not hurt the industry.

Owen – Would like to see more volume. The interface between the advertiser and Google is a little “clunky”. It is hard to develop nurturing campaigns with these leads, because of a lack of data.

Marc – People should look out for Google to come into their vertical and expect a volume dip. IN order for Google to scale they need to validate the process, for all player involved. Once it is validated they simply need to dial up the frequency of how many times they show the ads. With that in mind, Google has little vertical experience in house, but they will move into new verticals quickly once the process is validated.

Dave – Pubs should focus on content and the brand. Also diversification is key with your marketing efforts. Also, adding useful tools to add to the consumer experience.

Owen – Buyers need to focus on real time management of calls and how to best convert them.

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