The irony being Vonage is that the company which played a key role in popularizing the concept of VoIP in USA and other countries is now struggling for the survival. The company incurred a heavy loss (approximately $74.1 million) and customer churn of 9.5 percent during the second quarter of current fiscal year.
For Vonage, making a profit matters most. For which, it is trying to lure the customers by any means. One such step in this direction is promoting its products through Amazon.
How far would it be effective since the visitors of Amazon are net savvy and come across Vonage’s ads before?
Tom Keating comments:
Wouldn’t Vonage would be better off doing local mailings to target a broader audience? There is a huge demographic of broadband users that only use the Internet for email — for staying in touch with friends/family and only some occasional surfing. Many parents, or those >45 years old fall into this category. A banner ad won’t work on these people, since they don’t surf enough, nor are they tech-savvy enough to realize the savings VoIP could bring them. So wouldn’t it make sense to send a paper flyer to these folks that explains in layman terms how Vonage works and how much money could be saved?
