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It also doesn’t mean that the advertising is money wasted. Coke spends that money to remain the go to brand, and surely values being the cultural default very h

It also doesn’t mean that the advertising is money wasted. Coke spends that money to remain the go to brand, and surely values being the cultural default very highly. Saying “Coke would still sell without ads” really misses the point for why Coke advertises. It reminds of car ads. Apparently (correct me if I’m wrong), but OEM ads aren’t about converting new customers, but they’re about trying to convert recent buyers into lifetime buyers. It’s to build in the consumer the attitude of “we’re a Ford household”, not to convince a Chevy driver to buy Ford for the first time.

GeneralMayhem 5y ago
I don't disagree with you. My point wasn't that Coke-style brand advertising was worthless, just that it's extremely difficult to measure without much longer experiments - specifically because it's been so successful.
- popcube 5y ago
  I remember an experiment about coparing cola and psi, they found advertisement of cola was so successful that people saw a cola bottle will let them feel it more delicious. I assume they want to keep this advantage in internet era
  - GhettoComputers 5y ago
    Wouldn’t it be better just to have it as product placement rather than advertising? Warren Buffet makes it look great, 5 cans a day. With his longevity and investments he’s great for them.
    - GeneralMayhem 5y ago
      Product placement is a subset of advertising, not a different thing.
a4isms 5y ago
The automobile analogy brings up another benefit of advertising. Items that are sold as socioeconomic status proxies don’t work unless everybody knows the brand. It’s not just that Volvo wants me to think I drive a safe wagon that is a sensible choice for middle-class, educated people who watch public television. I want my neighbours to think these things about me even though they drive Ford and GM. That advertising assures me I’ll get both a car and a cachet. If Volvo had a way of only selling to people who want Volvo cars for the utility, but few others would have heard of the brand, it would have less value.

GeneralMayhem 5y ago

I don't disagree with you. My point wasn't that Coke-style brand advertising was worthless, just that it's extremely difficult to measure without much longer experiments - specifically because it's been so successful.

popcube 5y ago
I remember an experiment about coparing cola and psi, they found advertisement of cola was so successful that people saw a cola bottle will let them feel it more delicious. I assume they want to keep this advantage in internet era
- GhettoComputers 5y ago
  Wouldn’t it be better just to have it as product placement rather than advertising? Warren Buffet makes it look great, 5 cans a day. With his longevity and investments he’s great for them.
  - GeneralMayhem 5y ago
    Product placement is a subset of advertising, not a different thing.

a4isms 5y ago

The automobile analogy brings up another benefit of advertising. Items that are sold as socioeconomic status proxies don’t work unless everybody knows the brand. It’s not just that Volvo wants me to think I drive a safe wagon that is a sensible choice for middle-class, educated people who watch public television. I want my neighbours to think these things about me even though they drive Ford and GM. That advertising assures me I’ll get both a car and a cachet. If Volvo had a way of only selling to people who want Volvo cars for the utility, but few others would have heard of the brand, it would have less value.