Profiting from Pirates
Friday, 13th November , 2009
Even though the music industry gets all of the press about piracy, stealing software is still alive and well. Actually, with the proliferation of torrent sites, it’s probably easier than ever to pirate software. But this isn’t a post about software piracy. Nope, this is a post about reaching potential customers is places you might not expect.
Rosetta Stone is a leader in proprietary language-learning software. If you’re not familiar with the product, their language software is priced per level per language, i.e., level 1 Spanish. With each language consisting of three levels and each level costing around $200, the software is not cheap. And, needless to say, software with a high price tag will be subject to piracy.
So the question becomes:
Can a person actively searching for an illegal copy of software be convinced to pay for it?
Most companies would probably say no and simply pretend these people don’t exist and hope they go away. But Rosetta Stone doesn’t appear to be ignoring this group and actually is going out of their way to target them.
The above ad is shown on Google AdWords for the search phrases “Rosetta Stone Torrent” and “Rosetta Stone Rapidshare” (Rapidshare is a file upload site that many people use to host large files.).
According to Google keyword data:
Rosetta Stone Torrent:
Global monthly searches = 90,500
Average CPC = $0.05
Rosetta Stone Rapidshare:
Global monthly searches = 22,200
Average CPC = $0.05
So instead of missing 112,700 potential consumers every month, Rosetta Stone places an ad relevant to their search request (possibly instilling a little fear in them) and gives them a chance to purchase the software legally.
I have yet to see other companies employing this method, which is a shame because in most cases the volume of search warrants a response from the company.
Check out the data for Microsoft related keywords.
Office Torrent
Global monthly searches = 368,000
Average CPC = $0.93
Office Keygen 2007
Global monthly searches = 201,000
Average CPC = $0.79
A keygen (an abbreviated form of “key generator”) is a program that will generate valid CD keys for a piece of software.
Why this is important
I know it probably seems a little weird to target people that are actually trying to steal your product. However, consider where they are in the buying cycle.
- Awareness √
- Interest √
- Desire √
- Action
This person is well aware of who you are, they are very interested in your offering and they are actively searching for a way to take action. Don’t let them get away now!
Why it works
Let’s not forget the facts: downloading software is illegal, it’s time consuming and can lead to viruses and spyware. No, not all of the pirates are going to concede to defeat and buy your software. But, some percentage of them will. Make it easy for them to do so.
Sweeten the deal
The ad below appears when you search for “Rosetta Stone Coupon” and similar variations.
When you click the ad you are taken to a landing page that gives you 10% off. Rosetta Stone is offering this discount because the customer is one step away from a purchase and the company wants to remove all doubt. Everyone likes to get a deal and most people don’t mind paying for something if they see value in it. Why not offer this same incentive to individuals trying to get a free copy of your software.
You’re not rewarding bad behavior, your encouraging good behavior with a reward.
It’s time to start thinking outside the box when it comes to paid search marketing. It’s so much more than a simple direct response. Yarrrgh what ye say matey?
About the Author
Rich is the president and founder of Radium, an enterprise digital marketing agency specializing in search and social media. He is a Google AdWords qualified professional and splits his time between Austin Texas & Charlotte NC. Follow Rich on twitter.
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