Published May 29, 2025
1
The Idea
In the previous essay, I discussed how Progency can be thought of as the Growth Alpha engine. In this series, I will explain how NeoN can be considered as delivering Beta at a lower cost. Both Progency and NeoN are the two primary anchors of NeoMarketing, a new era in marketing which focuses on retention over reacquisition, trust over transactions, and individuals over segments. NeoMarketing helps maximise LTV and minimise CAC to deliver sustainable profitable growth.
As I explained in NeoMarketing: Double the Best, Halve the Waste: “NeoN reimagines advertising through authenticated identity, creating a direct marketplace that connects brands without expensive intermediaries. Unlike cookie-based targeting, NeoN leverages first-party data with deterministic, precise matching to enable brand-to-brand collaboration. Through this approach, one brand’s inactive “Test” customers can be precisely targeted through another brand’s engaged “Best” customer channels. Interactive ActionAds within partner emails enable complete transactions without leaving the inbox, dramatically increasing conversion rates. This creates a powerful dual advantage: publishers “print money” by monetising their engaged audience while advertisers “save money” through dramatically more efficient customer acquisition—cutting costs by 30-50% compared to traditional platforms. As third-party cookies disappear, NeoN’s authenticated approach represents not just another advertising channel but a fundamental reimagining of how brands reach both dormant customers and new prospects.”
NeoN’s revolutionary approach is powered by the PACE framework—a comprehensive system designed to eliminate the inefficiencies of traditional advertising while creating a more effective, ethical ecosystem:
- PII Matching Engine: Unlike cookie-based targeting that relies on probabilistic matching, NeoN’s core innovation lies in its authenticated identity engine. This precise system enables brands to reach their dormant customers through email channels where those individuals are actively engaged with other brands. This deterministic matching ensures messages reach exactly the right people, eliminating the waste inherent in traditional adtech.
- ActionAds: Traditional digital advertising suffers from a devastating “click-through penalty” where 80-90% of potential conversions are lost when customers must navigate to external sites. NeoN’s ActionAds, powered by AMP technology, create interactive mini-applications within emails that enable browsing, form completion, and purchasing without leaving the inbox—dramatically improving conversion rates whilst reducing friction.
- Cooperative Structure: Rather than enriching platform intermediaries, NeoN creates a direct marketplace where brands simultaneously play dual roles—as publishers monetising their engaged audiences and as advertisers efficiently reacquiring their dormant customers. This cooperative approach creates powerful network effects where each participating brand strengthens the overall ecosystem.
- Ecosystem Services: Beyond core matching capabilities, NeoN develops complementary utilities that expand inventory opportunities while enhancing data capabilities, including inbox intelligence, AI-powered newsletters, an Atomic Rewards system for micro-actions, and sophisticated data management functionality for high-potential audience identification.
NeoN focuses on Test and Next customers. It provides an alternative to current ad networks like Google and Meta, using the authenticated identity (PII) available via martech channels and touchpoints like email, notifications, and search to slash acquisition and reacquisition costs, and therefore AdWaste. By creating a more efficient distribution system for reaching target audiences, NeoN delivers the same customer access as traditional platforms (Beta) but at significantly lower costs—effectively reducing the “Beta tax” brands have been forced to pay through auction-based advertising platforms.
The implications are transformative: brands can maintain or even expand their marketing reach while dramatically reducing dependency on expensive intermediaries. This shift represents not just cost optimisation but a fundamental restructuring of the marketing ecosystem—where brands collaborate directly, customers receive more relevant communications, and the massive inefficiencies of AdWaste are systematically eliminated.
2
History
I asked Claude and ChatGPT for an overview of Beta in finance and other industries.
The concept of Beta originates in the world of finance, specifically in the Capital Asset Pricing Model (CAPM) developed in the 1960s by Jack Treynor, William Sharpe, John Lintner, and Jan Mossin. Beta measures an investment’s sensitivity to market movements—essentially, its correlation with the overall market. A Beta of 1 indicates the investment moves in lockstep with the market, greater than 1 means amplified movements, and less than 1 implies dampened volatility.
Beta served as the benchmark return investors could expect simply by taking market risk without any special insights or skill. It represented the “cost of being in the game”—the return earned by passively riding the market’s ups and downs.
In contrast, Alpha emerged as the excess return generated beyond Beta. In essence, Beta represented the tide; Alpha measured the ability to swim faster than the tide. Investors paid managers for Alpha, not Beta—because Beta could be obtained cheaply through index funds.
Beta’s Expansion Beyond Finance
While its roots lie in capital markets, the concept of Beta has spread to other industries over the past few decades:
- Consulting and Professional Services: Clients expect baseline improvements (“Beta outcomes”) from hiring top consultancies—e.g., a standard uplift in productivity or cost savings that any credible firm can deliver. But consultancies earn their premium fees by generating Alpha outcomes—transformative improvements beyond the baseline.
- Legal Industry: Big law firms price routine legal work (filings, documentation) at Beta rates. But complex litigation or landmark deals—where the outcome can swing by billions—command Alpha fees tied to exceptional results.
- Technology and SaaS: Traditional software offers baseline automation (Beta) that every competitor can also deploy. But platforms that unlock proprietary data insights, operational efficiencies, or network effects create Alpha—advantages competitors cannot easily replicate.
- Marketing (implicitly): For decades, marketing operated in a Beta paradigm—benchmarked to industry-standard metrics like clickthrough rates, conversion rates, or ROAS. Agencies promised “average” returns based on historical norms. But they rarely offered Alpha—measurable outperformance that exceeded market norms or the brand’s historical baseline.
The Beta-Alpha Link: Why Both Matter
Beta is foundational—it provides the cost of participation and a minimum benchmark. Without Beta, there’s no basis for measuring Alpha. But Beta is inherently capped—it tracks systemic market returns or industry norms. Only Alpha creates upside beyond the market or category average.
In finance, this distinction became critical as index funds commoditised Beta, driving investors to seek scarce Alpha elsewhere. The same dynamic is now emerging in industries like marketing: platform-driven advertising delivers Beta returns accessible to every brand, leading to diminishing differentiation and rising costs.
This is why the framing of Progency as the “Growth Alpha Engine” and NeoN as the “Beta Efficiency Engine” is so powerful. NeoN delivers the essential customer acquisition reach every brand needs but with dramatically improved efficiency—ensuring they don’t overpay to reach customers they already know. Meanwhile, Progency generates true outperformance by maximizing customer lifetime value (LTV) through proprietary, AI-powered engagement strategies that exceed baseline expectations.
In other words: NeoN optimises the necessary market participation costs (delivering Beta with superior efficiency), while Progency creates exceptional performance beyond industry norms (delivering Alpha that competitors cannot easily replicate). Together, they form the complete NeoMarketing framework—optimizing both sides of the profit equation.
3
The How
The modern digital advertising ecosystem operates through a series of interconnected auction-based platforms that systematically drive up costs while delivering increasingly diminishing returns. At its core, this system hinges on probabilistic targeting through cookies, device IDs, and algorithmic modelling—all designed to approximate audience characteristics rather than definitively identify individuals.
This inherently flawed approach creates multiple inefficiency points. First, the auction-based pricing mechanisms ensure costs consistently trend upward as brands compete for the same attention. Second, platform intermediaries (Google, Meta, etc.) extract significant revenue—often 30-50% of spending—simply for facilitating access to audiences that brands may already have relationships with. Third, the targeting imprecision means approximately 20-40% of impressions reach incorrect audiences despite sophisticated algorithms, creating unavoidable wastage.
Perhaps most troublingly, this system fundamentally lacks transparency. Brands never know exactly whom their adverts reach, cannot verify audience quality directly, and are beholden to black-box attribution models owned by the very platforms selling the inventory. This creates an impossible situation where those selling the service also control the measurement of its effectiveness.
NeoN’s Beta Efficiency Revolution
NeoN fundamentally transforms this broken model by addressing each inefficiency point directly.
Firstly, NeoN targets the largest source of AdWaste: reacquisition spending. By focusing specifically on dormant “Test” customers (inactive 90+ days), NeoN addresses the approximately 70% of digital marketing budgets currently haemorrhaged to repeatedly reach customers brands already know. This represents the greatest efficiency opportunity in the entire marketing landscape.
Secondly, NeoN replaces probabilistic with deterministic targeting through its PII (Personally Identifiable Information) matching engine. Rather than approximating audience characteristics, NeoN creates precise matches between a brand’s dormant customers and the active audiences of non-competing brands. This eliminates the 20-40% targeting waste inherent in cookie-based approaches, ensuring messages reach exactly the intended recipients. If traditional ad platforms are like blindfolded archers shooting arrows and hoping they hit the target, NeoN hands marketers a laser pointer—directing their message precisely to known customers already waiting to hear from them.
Thirdly, just as Singular AI Twins enable true 1:1 personalisation for retention and growth, NeoN’s authenticated identity approach enables perfect precision in reacquisition. When an inactive “Test” customer of Brand A is simultaneously an engaged “Best” customer of Brand B, NeoN creates the ideal targeting environment—reaching people through channels where they’re actively engaged, with permissioned identity ensuring accuracy.
Furthermore, NeoN applies this same authenticated approach to new acquisition through its sophisticated DMP (Data Management Platform). By leveraging cross-brand intelligence and zero-party data, NeoN identifies genuinely high-potential prospects with unprecedented precision, reducing the wastage endemic to traditional lookalike modelling.
Finally, NeoN eliminates the platform intermediary “tax” by creating direct brand-to-brand collaboration. Rather than paying Google or Meta premiums through competitive auctions, brands establish mutually beneficial partnerships—monetising their engaged audiences while efficiently reacquiring their dormant customers at substantially lower costs.
Here is a table summarising NeoN’s fixes versus traditional platforms.
| Problem (AdTech) |
Solution (NeoN) |
| Auction-based inflation |
Direct brand-to-brand collaboration |
| Probabilistic targeting (cookies) |
Deterministic PII matching |
| Black-box attribution |
Transparent identity-based reach |
| Click-through penalty |
In-email ActionAds conversion |
The result is a comprehensive Beta Efficiency Engine that delivers the same essential customer reach as traditional platforms but with dramatically improved efficiency—cutting reacquisition costs by 30-50% and simultaneously improving targeting precision and conversion rates through interactive ActionAds embedded directly within partner emails. NeoN doesn’t merely patch the inefficiencies of today’s ad ecosystem—it rewires the economics of attention for a world where identity, trust, and efficiency form the new competitive advantage.
4
Learnings from Finance
I asked Claude and ChatGPT for lessons which NeoN can learn from finance.
In the world of finance, few innovations have been as transformative as the index fund revolution pioneered by Vanguard’s John Bogle. By offering market exposure (Beta) at dramatically lower costs than actively managed funds, index funds fundamentally restructured investment economics. NeoN brings this same revolutionary approach to marketing—applying key financial principles to create unprecedented efficiency in customer acquisition.
The Index Fund Parallel: Just as index funds strip away unnecessary intermediary fees to deliver market Beta at minimal cost, NeoN eliminates the platform “tax” that currently inflates reacquisition spending. Traditional adtech platforms operate like high-fee active managers, charging premium rates for access to audiences that brands may already have relationships with. NeoN, by contrast, functions as the marketing equivalent of a low-cost index fund—delivering the same essential customer reach without the exorbitant platform premiums. In other words, NeoN is to customer reacquisition what index funds were to investing: stripping out hidden fees, intermediaries, and inefficiencies—delivering the same reach at a fraction of the cost.
Attention Arbitrage: Financial markets thrive on arbitrage—the practice of exploiting price discrepancies across different markets. NeoN creates a similar “attention arbitrage” by identifying a fundamental pricing inefficiency: the same customer can be reached as an engaged email recipient far more cheaply than through competitive ad auctions. By tapping into partner brands’ active email audiences, NeoN allows brands to reacquire their dormant customers at 30-50% lower costs—a classic arbitrage opportunity that creates immediate value.
Factor-Based Targeting: Modern finance has evolved beyond simple indexing to “Smart Beta” strategies that target specific factors (value, quality, momentum) driving returns. Similarly, NeoN replaces crude probabilistic targeting with deterministic identity factors. Where traditional platforms rely on behavioural proxies and lookalike models, NeoN uses authenticated PII as a proprietary targeting factor—turning known identity into a precision advantage that auction-based platforms cannot replicate.
Optimising the Cost Structure: The investment world clearly distinguishes between low-cost Beta (0.1-0.3% fees for index funds) and premium-priced Alpha strategies (1-2%+ for active management). NeoN brings this same cost discipline to marketing, allowing brands to secure their necessary customer reacquisition at “index fund rates.” This fundamentally transforms budget allocation, freeing resources previously wasted on platform premiums to be redeployed toward true Growth Alpha initiatives.
Disintermediation and Direct Access: Financial markets have steadily moved toward disintermediation—enabling investors to access markets directly without unnecessary middlemen. NeoN creates this same direct access in marketing, connecting brands to customers through authenticated channels rather than platform intermediaries. This isn’t merely cost-cutting—it’s restructuring the entire value chain to eliminate entities that extract disproportionate value without adding commensurate benefits.
Just as Vanguard’s index revolution permanently altered the investment landscape by demonstrating that Beta exposure needn’t come at premium prices, NeoN transforms marketing by proving that customer acquisition doesn’t require platform dependency. By unlocking attention arbitrage, eliminating hidden fees, and replacing probabilistic guessing with deterministic precision, NeoN delivers the marketing equivalent of Bogle’s greatest insight: the most reliable path to superior performance often begins with minimising unnecessary costs.
5
Objection Handling – 1
I asked Claude and ChatGPT to list out possible objections from CMOs and other stakeholders that merit thoughtful consideration.
- Data Privacy & Consent Concerns
Objection: “NeoN’s PII-based matching seems concerning from a privacy perspective. Are we compliant with GDPR, CCPA, and other regulations? Will customers perceive this approach as invasive or creepy?”
Response: NeoN operates on a privacy-first foundation that exceeds industry standards:
- Only uses permissioned, first-party data from existing brand relationships—never buying or selling data
- Functions as a closed-loop matching system without exposing PII across brands
- Operates like a secure “clean room” where only anonymized identifiers are compared
- Provides clear opt-out mechanisms for users across all participating brands
- Represents a privacy-forward alternative to cookie-based surveillance tracking
“NeoN uses the data customers have already shared with you—ethically, transparently, and with their permission. We don’t follow customers around the web; we reconnect you in channels they already trust.”
- “Creepiness” or Perception of Cross-Brand Targeting
Objection: “Won’t customers find it invasive if Brand A seems to know what Brand B knows about them? Is this secretly a data-sharing arrangement consumers didn’t agree to?”
Response:
- NeoN doesn’t share raw customer data between brands—it acts as a secure matching and delivery system
- Recipients only see ads from brands within channels they’ve explicitly opted into
- The approach is less intrusive than traditional web display ads or third-party cookie retargeting
- All content is contextually relevant, privacy-safe, and easily opt-out-able
- Research shows consumers prefer relevant offers in trusted channels over random targeting across the web
“NeoN never transfers your customer data. It operates like a postal sorting service: matching addresses behind the scenes, delivering relevant offers inside permissioned inboxes without exposing identities between brands.”
- Email Attention Overload / Customer Fatigue
Objection: “Will embedding ActionAds in emails dilute attention or annoy subscribers? Won’t this reduce engagement with our own brand’s content?”
Response:
- NeoN uses non-intrusive placements (email footers, designated sections) that complement, not compete with, primary brand content
- Each ActionAd is contextually matched to recipient behaviour—creating relevance, not interruption
- Brands maintain control over placement density and frequency (e.g., limit to one ActionAd per email)
- Early implementations show well-designed ActionAds actually increase overall email engagement by providing additional value
- The approach transforms passive email space into an active revenue stream without overwhelming the audience
“NeoN turns under-utilised email real estate into a profit generator—without distracting from your message or overwhelming your audience. It’s like adding a trusted, relevant partner message that enhances rather than detracts from the recipient experience.”
- Deliverability & Spam Risks
Objection: “Will adding third-party ActionAds trigger spam filters or harm our email deliverability score? Will inbox providers penalise us for advertising other brands?”
Response:
- NeoN ads are native to the email format (AMP/CSS), avoiding external links or attachments that trigger spam rules
- The system works within inbox platform guidelines (Gmail AMP approval, etc.)
- Comprehensive A/B testing and deliverability monitoring ensures placements don’t impact sender reputation
- Brands can limit NeoN ads to specific audience segments or email types (promotions, newsletters)
- The system follows best practices that maintain deliverability while opening new monetisation streams
- Brand Safety & Control Concerns
Objection: “What if my brand’s email ends up showing a competitor’s ad? How do we ensure we don’t promote brands that conflict with our values?”
Response:
- NeoN includes comprehensive brand-level whitelist/blacklist controls
- Each brand approves exactly who can advertise in their inventory
- No direct competitors will be shown without explicit permission
- Vertical segmentation ensures ads only appear from non-competing categories
- Complete transparency into which brands will appear in your communications
- Regular reporting shows exactly which brands are appearing and their performance
“With NeoN, you’re in complete control: you choose exactly who can advertise in your customer communications. No unwanted competitors, no mismatched messages, no surprises.”
6
Objection Handling – 2
- ROI Skepticism & Adoption Risk
Objection: “Sounds promising, but will this really save 30-50% on acquisition costs compared to traditional platforms? What’s the evidence this works better than Google/Meta?”
Response:
- Comprehensive case studies and benchmark data demonstrating improved CAC versus traditional ad platforms
- Risk-free pilot campaigns or guaranteed performance benchmarks to encourage adoption
- NeoN positions as an incremental, not replacement solution—doesn’t require dismantling existing ad spend initially
- Transparent measurement allows direct comparison with other channels
- Unlike black-box attribution models, NeoN provides clear visibility into exactly which dormant customers were reached and their actions
“NeoN lets you test without risk—plug it into a subset of your dormant customers and compare outcomes side by side with existing channels. The data will speak for itself.”
- Implementation Complexity
Objection: “This sounds promising but complex to implement. Will this require retraining my team or overcomplicating workflows? Do we need to overhaul our tech stack?”
Response:
- NeoN operates as a fully managed service or via existing ESP integrations—no new dashboard overload
- Connects to existing email service providers and CRM platforms through standard APIs
- Most brands can be onboarded within 2-4 weeks with minimal technical overhead
- Dedicated implementation specialists guide the process from start to finish
- For brands concerned about complexity, managed service options handle all technical details
- Progressive adoption model allows starting with a small segment before scaling based on proven results
“NeoN doesn’t ask your team to learn new systems. We slot seamlessly into your existing email templates, automations, and processes—like adding a high-performing co-pilot that enhances your current capabilities.”
- Reciprocity Requirements
Objection: “For this to work, we’d need to place other brands’ ads in our emails, which we’re hesitant to do.”
Response:
- NeoN’s cooperative structure offers flexible participation models
- Brands can start as advertisers only before gradually incorporating publisher capabilities
- The system is designed to provide value at each stage of adoption
- Additional revenue stream—often generating 30-40% more than the cost of email sending—creates a compelling business case
- Complete control over which partner brands can appear in your communications
- Measurement and Attribution Skepticism
Objection: “How can we trust NeoN’s measurement when we’ve been burned by opaque attribution models before?”
Response:
- Unlike black-box adtech platforms, NeoN’s measurement is built on deterministic identity, not probabilistic models
- All interactions occur within authenticated environments, making attribution direct and transparent
- No more questionable “view-through” claims or conversion credits
- Comprehensive reporting shows exactly which dormant customers were reached and which actions they took
- Creates unprecedented accountability compared to traditional platforms where those selling inventory also control measurement
- Consumer Opt-Out or Brand Loyalty Dilution
Objection (from end users): “Why is Brand A showing me ads for Brand B? Is this a sellout? Will I opt out?”
Response:
- NeoN targets opt-in communications and prioritises non-intrusive, contextually relevant offers
- Customers see fewer, more relevant ads in channels they already trust—no tracking across web/apps
- The approach aligns with evolving consumer expectations around personalisation
- Research shows 71% of consumers expect personalised interactions and 76% get frustrated when this doesn’t happen
- The transparency and value exchange create clarity rather than confusion
- In-email ActionAds deliver genuine convenience—allowing customers to take action without leaving their inbox
“We don’t follow you across the internet. We only show you exclusive offers from partners we trust, inside the emails you already opted into.”
The key pattern across all objections is control, transparency, relevance, and trust. NeoN represents “a more transparent, brand-controlled, privacy-safe alternative to third-party cookie retargeting and auction-based platforms—delivering Beta at a fraction of the cost, without sacrificing customer trust or experience.”
7
The Pitch – 1
I asked Claude and ChatGPT to create a role-play pitch between Maya (CMO) and John (Progency salesperson).
Claude
Scene: Maya’s office at a mid-sized B2C retailer with $200M annual revenue. She’s reviewing her digital marketing dashboard, frowning at the steadily rising acquisition costs. John, representing NeoN, enters for their scheduled meeting.
Maya: (looking up) Thanks for making the time, John. I’ve got about 30 minutes before my next meeting. Your email mentioned something about ‘Beta Efficiency’ and reducing customer acquisition costs, which honestly couldn’t come at a better time. Our CAC has increased 22% year-over-year.
John: (taking a seat) I appreciate the time, Maya. Before I dive into NeoN, might I ask what percentage of your digital marketing budget goes toward reacquiring customers you already know? People who’ve purchased before but have gone dormant?
Maya: (sighs) We’ve actually been trying to figure that out. Our best estimate is around 65-70%. I was shocked when our analytics team showed me the numbers. We’re essentially paying Google and Meta to reach people already in our database. It feels… inefficient.
John: You’re not alone. We call it the $500 billion AdWaste crisis – the industry average is indeed about 70%. The question is: why are brands forced to pay these platforms premium prices to reconnect with customers they already have relationships with?
Maya: (nodding) It’s a necessary evil, isn’t it? Once customers stop engaging with our emails or app, we have no choice but to find them elsewhere.
John: That’s exactly the problem we’ve solved with NeoN. Think of it this way: in finance, there’s a distinction between Alpha – outperformance through skill – and Beta, which is the baseline market exposure every investor needs. The issue is that brands are paying astronomical prices for what should be basic Beta – simply reaching their own customers.
Maya: (interested) I’m listening.
John: NeoN is what we call a Beta Efficiency Engine. It delivers the same customer reach you need but at 30-50% lower cost. We do this through authenticated identity targeting instead of cookie-based auctions.
Maya: (skeptical) How exactly does that work?
John: Remember when you mentioned customers who’ve gone dormant? We call them “Test” customers – inactive for 90+ days. Here’s the key insight: while they might be dormant for your brand, many of these same individuals are actively engaged with other non-competing brands.
NeoN creates a direct marketplace where brands can reach their dormant customers through the active email channels of these other brands. The magic is in our PII matching engine that makes precise connections between your inactive customers and where they’re actually paying attention.
Maya: So if I understand correctly, you’re saying my dormant customers might be opening emails from Brand X, and I could reach them there instead of through Google or Meta?
John: Exactly. And not just reach them – engage them. Traditional retargeting has another massive flaw: the “click-through penalty.” When customers click an ad, they’re taken to a landing page where 80-90% drop off before converting.
Maya: (nodding vigorously) Tell me about it. Our funnel analytics show exactly that pattern.
John: NeoN solves this with ActionAds – interactive AMP-powered units embedded directly in partner emails. Your customers can browse products, fill forms, even complete purchases without ever leaving their inbox. It’s like eliminating all the friction from the traditional customer journey.
Maya: This sounds promising, but I have concerns. First, what about privacy? Using PII to track customers across brands sounds like it could raise red flags.
John: That’s a great question. NeoN is actually more privacy-forward than traditional adtech. We never share raw customer data between brands. Think of us like a secure postal service – we match addresses behind the scenes but never expose identities. Everything happens with explicit consent, within channels customers have already opted into.
Maya: What about brand safety? I’d be worried about which other brands might appear in our emails, or where our ads might show up.
John: You maintain complete control. Our platform includes comprehensive whitelists and blacklists, ensuring no competitors or misaligned brands ever appear in your communications. You approve exactly who can advertise to your audience.
Maya: (thinking) And implementation? My team is already stretched thin.
John: NeoN slots seamlessly into your existing email service provider through standard APIs. Most brands are onboarded within 2-4 weeks with minimal technical overhead. We offer fully managed services if you prefer a hands-off approach. It’s designed to enhance your current capabilities, not create new workflows.
Maya: (nodding slowly) The cost savings sound impressive, but I’d need to see proof that this actually works better than our current channels.
John: Absolutely. We typically start with a risk-free pilot – you select a subset of your dormant customers, and we target them through NeoN while you continue reaching a control group through traditional platforms. The side-by-side comparison speaks for itself.
Maya: (intrigued) And this is where the “Beta Efficiency” concept comes in?
John: Precisely. Just as index funds revolutionized investing by providing market exposure without the hefty fees of active managers, NeoN delivers customer acquisition Beta without the platform tax. This means you can redirect those savings toward initiatives that actually generate Alpha – like using Progency to maximize customer lifetime value.
Maya: (checking her watch) This is genuinely intriguing, John. Could you send me a proposal for a pilot program? I’d want to test this with maybe 100,000 of our dormant customers – enough for a statistically significant test.
John: Absolutely. I’ll have that to you by tomorrow. One final thought – every dollar you save on reducing AdWaste is essentially pure profit. If NeoN can cut your reacquisition costs by even 30%, what would that mean for your bottom line?
Maya: (calculating mentally) Given our current spending… that would be substantial. Let’s explore this further. Send me that proposal and some case studies if you have them.
John: (standing to leave) Will do. Thank you for your time, Maya. I believe this could be transformative for your marketing economics.
Maya: We’ll see. The data will need to speak for itself. But if you can deliver what you’re promising – the same reach at half the cost – that’s certainly worth exploring.
8
The Pitch – 2
ChatGPT
Scene: Video call between Maya, CMO of a mid-sized D2C beauty brand, and John, NeoN sales executive.
John:
Maya, thanks for taking the time. I know you’re busy, so let me get straight to it. You’ve probably felt it: your acquisition costs rising every year, Google and Meta squeezing more from your budget—and yet, the returns aren’t keeping pace. Does that resonate?
Maya:
Unfortunately, yes. CAC is up 40% in the past two years, and reacquiring churned customers is burning a hole in our budget. But what’s the alternative? We need to reach them somewhere.
John:
Exactly. That’s where NeoN comes in. Think of us as the “Beta Efficiency Engine” for your marketing. Just like an index fund gives investors market exposure at the lowest possible cost, NeoN delivers the same audience reach—your dormant customers, your next customers—but at 30–50% lower acquisition costs than you’re paying through auctions.
Maya (curious):
Wait, how? If Google and Meta own the ad space, how do you get me cheaper reach?
John:
Great question. Right now, you’re paying those platforms to reacquire customers you already know. Customers who’ve bought from you before. You’re paying a toll to rent their attention again.
NeoN cuts out the middlemen. We connect you directly to other brands’ active audiences—using privacy-safe, authenticated identity matching. If one of your dormant customers is actively engaging with Brand B’s emails, NeoN lets you reach them inside those emails, where they’re already paying attention.
Maya (raising an eyebrow):
Hold on—so you’re showing my ads inside another brand’s emails? Won’t that annoy customers—or dilute their attention?
John:
Fair concern. Actually, we place ActionAds in designated, non-intrusive slots—like the email footer or a sponsored section. Research shows they don’t harm engagement. And they’re fully interactive: your customers can browse, even complete purchases, without leaving the inbox.
And here’s the key: it’s permission-based. They’ve opted into Brand B’s emails. We’re just helping you reconnect with them where they’re already present and engaged. Much less intrusive than following them around the web with cookies.
Maya (thinking):
Interesting. But… my team’s already overloaded managing campaigns. Is this going to add more complexity?
John (smiling):
Not at all. NeoN integrates directly into your existing ESP or CRM. We generate the ActionAds, we handle the matching, the reporting. For your team, it’s as simple as pasting a block into your email template—or letting us do it as a managed service.
Maya (cautiously):
I still worry about privacy. Customers are already skittish about data sharing.
John:
That’s why we’re different. NeoN never shares raw data between brands. It’s like a secure postal sorting room: addresses get matched, but no one sees each other’s lists. GDPR, CCPA compliant, opt-out mechanisms built in. And because it’s deterministic identity—not probabilistic cookie tracking—it’s actually more transparent and privacy-safe than traditional retargeting.
Maya:
What about competitive conflicts? I don’t want a rival’s ad in my emails.
John:
You won’t. NeoN gives you full whitelist/blacklist control. You decide exactly which brands can advertise in your inventory, and whose inventory you’re allowed into. No competitors slip through.
Maya (leaning forward):
Okay… let’s talk numbers. You’re claiming 30–50% lower costs. Have you proven this?
John:
We’ve piloted NeoN with brands in fashion, beauty, and health. On average, they’ve cut reacquisition CAC by 35% compared to Meta and Google. I’d be happy to set up a risk-free pilot—let’s test it on a segment of your dormant customers, side by side with your current channels, and let the data speak for itself.
Maya (smiling):
Alright, John. You’ve piqued my interest. Send me the pilot proposal. If you can back up those claims, I’ll gladly divert some budget.
John (grinning):
Maya, I look forward to helping you stop overpaying for what you already own. I’ll send over the next steps today.
As John ends the call, Maya reflects: what if customer reacquisition didn’t have to mean paying platform tolls every time? NeoN offered not just a cheaper route—but a smarter one. Maybe, just maybe, this was the index fund moment her marketing team had been waiting for.
