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It's a prisoners dilemma of sorts: if one company reduces ad spend the others arguably benefit, and the only way to sustain lower rates is if every company in a
by TAForObvReasons 7y ago
It's a prisoners dilemma of sorts: if one company reduces ad spend the others arguably benefit, and the only way to sustain lower rates is if every company in an industry agrees to reduce ad spend. When things return to normal, that dynamic won't go away
- ragebol 7y agoI really don't think ads have a significant impact at all. How much is your buying affected by ads, really? Do you really buy a different eg. toothpaste rather than the one you typically get due to ads or because it's some percent off this time and it's also just okay toothpaste?
- Fauntleroy 7y agoDepends on the type of ad. Random preroll on a YouTube video? nah... Stealthy paid review / article? maybe...
- BurningFrog 7y agoThe standard counter question is: "Did you ever buy a tooth paste brand that didn't advertise?" Ideally you answer "no...", while a look of sudden realization comes over your face. Individual results may vary.
- vonmoltke 7y agoOther than generic store brands, I haven't seen a toothpaste brand for sale that didn't advertise, so it isn't a really a fair or informative question.
- freepor 7y agoWell there’s your comparison. The store brands are chemically basically identical to the brand names. But their market share is relatively low. So the advertising must do something.
- vonmoltke 7y agoI didn't make the claim it didn't. I was just reacting to that particular rhetorical question. On this subject, though, there is more at play than just advertising. First is availability; smaller stores won't have a private label option available at all, so some chink of the market is not open to them. Second is quality; this is not as much an issue with OTC pharmaceuticals since it's all about the active ingredient, but for products where more than just the active ingredient matters (like flavor or consistency) there is sometimes a quality difference. There definitely is with food. That said, I frequently buy store brands over name brands. I also buy some "name brands" that I have never seen an advertisement for.
- karatestomp 7y agoPackaging and shelf placement probably do a lot of the work, compared with, say, web ads about toothpaste.
- BurningFrog 7y agoI think you're staring right at the point, without seeing it...
- vonmoltke 7y agoI don't see a point except "everybody is doing it". While I don't agree with the person you are responding to, I don't think this is really evidence to the contrary or says anything much about the value of advertising.
- spaced-out 7y agoCan you name any large company that has gotten to where it is without advertising?
- majewsky 7y agoGoogle won the search engine market because it was objectively better and thus spread through word of mouth. The first time I saw Google run actual ads was when they pushed Chrome hard. Facebook also spread mostly through word of mouth and only started doing ads when its public image deteriorated. (Side-note: I'm in Germany, so this is about German ad campaigns. Also I have had adblockers for a long time, so when I say "they run ads", I mostly mean TV, print and billboards.)
- bkanber 7y agoYou just described two companies that became the ad channels, so they certainly are a bit of an exception. Even Apple, who has the most word-of-mouth viral product line in all history, used advertisements from the beginning.
- yazaddaruvala 7y agoTesla technically.
- 7y ago
- code_duck 7y agoI've never seen ads for the higher end/natural/organic brands such as Tom's of Maine, Nature's Gate, Auromere, Neem, Organix, Dr. Bronner's, or Jason.
- BurningFrog 7y agoThat's interesting. You could imagine these kind of brands can make a name for themselves by not participating in the vulgar ad rat race, and that would appeal to the sophisticated target group. Then again, when I google tom's of maine advertising, I get many hits saying the opposite, like https://www.youtube.com/channel/UCcfhusG_iJcQyFSBEOyeucA https://www.youtube.com/channel/UCcfhusG_iJcQyFSBEOyeucA I didn't check the other brands
- code_duck 7y agoMost of those brands are owned by larger companies now. Tom's is primarily owned by Comgate-Palmolive. Jason is part of Hain-Celestial. I doubt it's financially feasible to advertise on TV for the sales they expect in their niche. I'm not sure if it's the best way to reach people interested in natural toothpaste. I don't know whether consumers would think they stand out for not advertising, but it's possible that some customers prefer a a less known brand for some sort of feeling of exclusivity.
- BurningFrog 7y agoI'm guessing that segment needs to market in ways that doesn't look like advertising. Or at least not "hard sell" advertising.
- iso947 7y agoNo idea - I haven’t seen a toithpaste advert since the 90s. The only one I remember is aqua fresh, who had a jingle. That was in the days when I did watch adverts. I certainly do see adverts nowadays - when I take the tube at Euston for example. Sometimes I seek adverts out (Christmas). No doubt there’s some product placement too, but I can’t think of any that is toothpaste. I have used other toothpaste on occasion (hotels etc), but I stick with Colgate as the taste is acceptable and I’ve used it for many many years. Why would I change?
- avalys 7y agoI bought a Casper because I needed a new mattress, and I was already aware (thanks to ads they ran incessantly on my favorite podcasts) that there was a company with a quick and simple solution to my problem. I did a few minutes of research to verify that people actually liked the product, then I bought one. Yes, in the few minutes I spent doing my due diligence, I found a ton of other companies that were also selling foam mattresses over the internet, and many of them were cheaper. But the quality and wide distribution of Casper's marketing suggested they were a real company with substantial resources, and would likely be around for a while to support the product, whereas the other companies seemed like much smaller operations. I have certainly switched brands or variants of laundry detergent, toothpaste, deodorant, etc. because I saw an ad that let me know there was something "better" to try out. The common denominator here is that these are products I don't care that much about and am not going to invest that much time in researching. I don't really want to spend much time thinking about mattresses or toothpaste, and so I'm perfectly willing to rely on advertising as a passive way of getting information about what's available. On the other hand - I would never buy a smartphone, or a laptop, or a car from an advertisement, because these are things I'm passionate about and I already know the market and what fits my requirements.