David Cummings on Startups

Billboards for Web Hosting Companies

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David Cummings

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Driving around Atlanta recently I’ve see several large billboards for web hosting companies — yes, web hosting companies. Do they know something I don’t know? Since when did old fashioned billboards on the side of the road generate a better return on investment (ROI) when compared to online advertising? Here’s my theory: web hosting is so competitive, and has such low barriers to entry and obvious need, that the traditional online lead generation routes don’t have an appreciable ROI. Web hosting companies that continue to do the online advertising do so to get greater economies of scale so that these new customers eventually will be profitable. And, that’s why they are trying out billboards.

Oh, and here are the companies that are advertising:

Comments

2 responses to “Billboards for Web Hosting Companies”

  1. Mike Landman Avatar
    Mike Landman

    Don’t forget Def 6, they have had a billboard forever.

    Also, I sh*t you not, we were pitched that same tagline about 4 years ago. And it’s also used by Splunk in some of their banners.

    Reply
  2. davidcummings Avatar
    davidcummings

    Thanks Mike. I heard Def 6 gets their billboard at cost b/c of a board member relationship.

    That’s funny you guys were pitched that same tagline a while back. I’m guessing we’ll see it used by even more tech companies in the future.

    Reply

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