So, I'm confused. I can see that people clicking through AdWords allows you to gauge interest. But having failed to find what they were actually looking for, people actually stick around and fill surveys about it? Really? There must be a giant selection effect in who decides to actually go through with it. I can imagine it ending up being quite misleading.
tl;dr: Before developing a product, test the idea by creating a landing page with a feedback mechanism (survey, email notification, newsletter, etc.) then setup an AdWords account. It's a recycled idea that he has re-branded as "Ghetto Testing".<p>What he leaves out is that this is also a good way to gauge the cost of acquisition. I've seen several products developed that never advertise on AdWords because they discovered after development that the keywords were too expensive to bid on.
Innovative? This is just another name for vaporware, launch a small ad campaign, see how it goes, discard failures brutally. It is also incredible offputting to customers (who actually aren't complete idiots and can remember a brand). I'm sure anyone who has googled around for a solution to something knows the feeling "We have a product that matches what you want to do completely! Click here! Oh btw, by 'have' we mean 'don't have but will. Perhaps". Yeah, next time you offer something real, there's a good possibility may say "Suuure you do".
Asking users is one thing, but all out trusting them is another.<p>"If I’d asked people what they wanted, they would have said faster horses" -- Henry Ford
In practice, this can be very expensive. If you need to pay a couple bucks a click, you could be in for thousands of dollars before you get meaningful data. It can also take a long time. You may as well build a demo and test that.<p>This is a tactic better suited to free traffic, which makes it tough to pull off from a cold start.