4 ms·

I just wonder if some of these advertisers will notice if their brand advertising is even necessary when you're already household name. I also wonder if the boy

I just wonder if some of these advertisers will notice if their brand advertising is even necessary when you're already household name. I also wonder if the boycotts will lower the cost of ads across the platform in general because you have less people competing for space.

PedroBatista 6y ago
Big brands need to spend quite a bit of money to keep the brand recognition going. That's why they spend what they spend on FB and also a few millions on 1 day events with limited reach but "high value". It "works", but it really can't be analytically measured ( isn't that convenient? )
- catalogia 6y ago
  Consider the case of starbucks: I think the combination of people sticking to daily routines, ubiquitous store placement, and the headaches a heavy caffeine consumer gets when they stop will ensure their brand recognition stays high even when they no longer advertise on facebook.
  - PedroBatista 6y ago
    Yes but most companies aren't in that business and don't have a giant billboard in every street corner in all cities ( at least it looks like it ). It's an expensive billboard but the billboard it self generates the revenue and the cups are the flyers that infiltrate every corner of society. Most companies have to fight for attention every second of the day. the ROI? who knows but most CEO's are not willing to learn the answer if it's "you failed as CEO because you didn't spend enough on marketing and now it's too late". Also, nobody was fired for buying IBM.
david422 6y ago
Think of how much advertising Coke does. It's so they can remain on top.
- partiallypro 6y ago
  I don't really agree. Coke maintains its domination because it signs so many vendor agreements that keep out competition (Pepsi does the same,) and they are really good at it. I think a lot of ad spending that is all "brand" is largely a waste. There isn't really much good data to support it works if you're already massive, I think it's just something that has stuck with the industry, and since they can't really improve their margins anymore...throwing a few million at advertising is a business expense they can write off and it might have -some- effect does make sense. But, you could easily shift that budget to community outreach or whatever and it would probably have almost no negatives. I've worked with so many companies that get towards the end of the quarter and say "well, we have all this ad money, we've got to spend it before the quarter runs out!" They sometimes don't even care how it's spent, it just has to be spent. I really don't think brand advertising itself is the main driver of recognition once you reach a certain point. To be clear, I'm talking about brand only advertising. Product ads are different.
  - chillacy 6y ago
    That’s a lot of cash to burn for nothing, supposedly though the goals of their brand advertising are building goodwill? At least according to this article https://www.forbes.com/sites/greatspeculations/2016/09/26/coca-colas-advertising-and-marketing-efforts-are-helping-it-to-stay-on-top/#63e8fbd128d7 https://www.forbes.com/sites/greatspeculations/2016/09/26/co... This one seems to have a sales impact but it’s perhaps a more sophisticated campaign https://www.wsj.com/articles/share-a-coke-credited-with-a-pop-in-sales-1411661519 https://www.wsj.com/articles/share-a-coke-credited-with-a-po...

PedroBatista 6y ago

Big brands need to spend quite a bit of money to keep the brand recognition going. That's why they spend what they spend on FB and also a few millions on 1 day events with limited reach but "high value". It "works", but it really can't be analytically measured ( isn't that convenient? )

catalogia 6y ago
Consider the case of starbucks: I think the combination of people sticking to daily routines, ubiquitous store placement, and the headaches a heavy caffeine consumer gets when they stop will ensure their brand recognition stays high even when they no longer advertise on facebook.
- PedroBatista 6y ago
  Yes but most companies aren't in that business and don't have a giant billboard in every street corner in all cities ( at least it looks like it ). It's an expensive billboard but the billboard it self generates the revenue and the cups are the flyers that infiltrate every corner of society. Most companies have to fight for attention every second of the day. the ROI? who knows but most CEO's are not willing to learn the answer if it's "you failed as CEO because you didn't spend enough on marketing and now it's too late". Also, nobody was fired for buying IBM.

david422 6y ago

Think of how much advertising Coke does. It's so they can remain on top.

partiallypro 6y ago
I don't really agree. Coke maintains its domination because it signs so many vendor agreements that keep out competition (Pepsi does the same,) and they are really good at it. I think a lot of ad spending that is all "brand" is largely a waste. There isn't really much good data to support it works if you're already massive, I think it's just something that has stuck with the industry, and since they can't really improve their margins anymore...throwing a few million at advertising is a business expense they can write off and it might have -some- effect does make sense. But, you could easily shift that budget to community outreach or whatever and it would probably have almost no negatives. I've worked with so many companies that get towards the end of the quarter and say "well, we have all this ad money, we've got to spend it before the quarter runs out!" They sometimes don't even care how it's spent, it just has to be spent. I really don't think brand advertising itself is the main driver of recognition once you reach a certain point. To be clear, I'm talking about brand only advertising. Product ads are different.
- chillacy 6y ago
  That’s a lot of cash to burn for nothing, supposedly though the goals of their brand advertising are building goodwill? At least according to this article https://www.forbes.com/sites/greatspeculations/2016/09/26/coca-colas-advertising-and-marketing-efforts-are-helping-it-to-stay-on-top/#63e8fbd128d7 https://www.forbes.com/sites/greatspeculations/2016/09/26/co... This one seems to have a sales impact but it’s perhaps a more sophisticated campaign https://www.wsj.com/articles/share-a-coke-credited-with-a-pop-in-sales-1411661519 https://www.wsj.com/articles/share-a-coke-credited-with-a-po...