Sponsored poolfunding is a marketing and lead generation strategy in which a group of vendors in a category (sharing some common characteristic, such as location) are ranked on a single landing page. These competitors pool their advertising dollars to purchase sophisticated ad campaigns and invest in other marketing tactics to drive substantial traffic to the page.
The concept of sponsored poolfunding can be compared to the idea of “pooled funds” in the investment world. But instead of pooling funds to invest in stocks and mutual funds, sponsored poolfunding pools the funds of vendors, enabling them to invest in expensive and complex marketing and advertising strategies that may otherwise be cost-prohibitive for single vendors.
Pros and Cons of Sponsored Poolfunding
Great Agencies is the first company to use the term sponsored poolfunding to describe the process of ranking the top vendors or agencies in a specific category and pooling the funds of those vendors to invest in advertising and marketing strategies. The idea is that each vendor pays for only a fraction of the total advertising costs, yet benefits from the full investment in terms of the amount of exposure received.
The downside is that traffic is generated for the rankings page, where vendors are listed alongside their competitors. But for most agencies, it can be a worthy investment, considering not every visitor generated from traditional digital marketing and advertising methods turns into a viable lead anyway. Some of those visitors end up being a better fit for the competing agencies in a niche.
How Sponsored Poolfunding Benefits B2B and B2C Consumers
On the other side of the coin, sponsored poolfunding is beneficial to potential consumers as well. When companies offering sponsored poolfunding have vigorous qualification criteria and stringent ranking methods, visitors who land on these pages have the opportunity to evaluate several key service providers in the field in one place.
The ability to compare the leading agencies offering search engine optimization (SEO) services in terms of services offered, average costs and other key criteria, for instance, can save businesses significant time they’d otherwise spend researching to identify the best agency that’s also a good fit for the company’s needs. For the consumers who use these services and the vendors who participate in pooled advertising investments, sponsored poolfunding can be a win-win.
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