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They must be working for others. If businesses couldn't profit off of advertising, then they wouldn't do it.
by Y7ZCQtNo39 9y ago
They must be working for others. If businesses couldn't profit off of advertising, then they wouldn't do it.
- itronitron 9y agoBut consumers aren't buying the advertising, they are buying the product. Advertising is an expense for both the producer ($) and the consumer (time) so neither can profit from it.
- turingbombe 9y agoNo they are not buying the ad but from the producers perspective advertising is the way to get their product in the consideration set or possibly push someone further down the purchase path.
- groby_b 9y agoYou, sir, are technically correct. The best kind of correct. Meanwhile, the effects of advertising result in a net profit for the producer.
- King-Aaron 9y agoThat's not quite correct. A company spends 'x' amount on advertising, hoping that it will return 'x + profit' through increased sales. The customer obviously doesn't profit from it, but when does a customer actually profit from anything?
- manigandham 9y agoThey're buying the product because of the advertising. It's a cost of goods. You have to make the product then market it.
- Y7ZCQtNo39 9y agoThe point I was trying to make was, if advertiser's increased profits were less than the expense of advertising (e.g., a company spends $20 on advertising, but profits grow $10), then they the company would not advertise again, since that would be as effective as burning money in a pit.
- Kluny 9y agoIf you've ever done advertising on a small scale, you'll see how effective it is. For example, I worked in an antique shop that saw perhaps ten customers a day in its first month. At the end of that month we had an advertisement in the local newspaper, a full-page puff piece with a picture and about 500 words of text. I couldn't imagine that anyone actually read the little village newspaper it was in, but our foot traffic tripled for the following week, then dropped right off again.