Not talking about brand new stuff, but long established brands. For instance Coca Cola. Would their sales suffer if they stopped all advertising for a year and gave the savings to charity (without telling everyone in an advert)? Or McDonalds? Do they need to spend millions on TV, newspaper and online adverts to maintain their customer base?
Oh. My. Word.
This is just TJ baiting, isn't it?
This is just TJ baiting, isn’t it?
It's the real thing.
I'm loving it
Think about all the big companies spending millions on it. Don't you think that at least one exec in their king history would have had the idea to sit down and actually analyse wether or not it was worth spending all that money?
Answer: of course they do, they do it all the time. They have whole departments dedicated to analysing exactly what works and what doesn't and how much return they get on their investment in different ad channels.
Nah,they just do it for the lols
There are adverts?
Nice catch Cap'n.
I was ready to pounce
McDonalds is really good at running year round campaigns to draw people in, new menu items or even the monopoly all keep them front and centre. Cant recall the last coca cola advert I saw though, maybe during football worldcups and olympics? then the pesky xmas one too!
This is just TJ baiting, isn’t it?
To the MAXX!
It absolutely does work - some of the increases in profits (ROI) big businesses get when changing advertising approach can be staggering.
Look at Warburtons....
Warburtons, founded in Bolton in 1876, made profits of £11.3m in the year to September 2019, reversing a £6.6m loss the year before.
( https://www.prolificnorth.co.uk/news/marketing-services-news/2020/07/warburtons-pays-ps15m-dividends-following-success-de-niro-ad)
Of course it can be much more nuanced than that in reality as not every advert does the same thing to the same people (in desired response) and some products are in much more crowded spaces than others.
Also advertising can be for lots of different reasons such as to sell a new product, promote a discount or simply for maintaining product recognition and ensuring customer loyalty.
Would their sales suffer if they stopped all advertising for a year and gave the savings to charity
Probably a loss of sales. If they kept the money they saved as profit, that is a more interesting question.
What do you call advertising though?
In the case of Coke, its a bright red bottle in the supermarket, and a big logo on the tap in the pub, anybody who has ever consumed a carbonated drink knows what it is, and has probably tried it (and therefore formed their opinion on whether they like it or not). Why does someone take a coke rather than a pepsi when they buy their meal deal, why coke rather than lime and soda when they are designated driver?
In the case of McDonalds, is a massive yellow M you can see from the motorway. It's a name synonymous with fast food (which is a good thing for their potential customers)
Every little [bit of advertising] helps.
There's some claim that you need to see a brand 7 times in different contexts in order to gain familiarity with it and this familiarity would be likely to make you choose that brand over other less familiar brands selling a similar product.
Or McDonalds? Do they need to spend millions on TV, newspaper and online adverts to maintain their customer base?
They're contractually obliged to do so. All Maccy D's are franchises. On taking a franchise out you are guaranteed X squillion quid a year in advertising and marketing support, which means you don't have to worry about it as its all taken care of for you.
That's a massive plus point for anyone running a business.
Speaking of which....
Just check out how much press coverage this got today
https://twitter.com/JOE_co_uk/status/1325735363189633025?s=20
And rightfully so! Who doesn't want a double big mac? 😀
All Maccy D’s are franchises
I'm pretty sure they aren't, i think its about 75% franchises.
I guess with MacDonalds and Coke you have loads of options with the exception of vending machine you are normally confronted with a variety of softdrinks they have to try and make sure the majority of the time you puck theirs to keep profits high.
And rightfully so! Who doesn’t want a double big mac? 😀
Me. They envariably get the ratios wrong with these doublers, same with the double quarter pounder. Not as good as two quarter pounders.
I agree with you about the Double Quarter Pounder.
Triple cheeseburgers, on the other hand....
😀
And rightfully so! Who doesn’t want a double big mac? 😀
Me. I truly detest their revolting food
I can basically print money by advertising HebTroCo smartly on Facebook. The amount I spend directly relates to sales it will generate. I dial it up and down depending on how much we want to sell.
Ask the bike co’s that don’t get reviewed because they don’t spend on advertising.
Much of the news you consume today is as a result of PR / advertising spend.
If a co stopped bidding on keywords their competitors would realise and take their sales on the back on an algorithm... ...without any human interaction.
Small lifestyle co doesn’t need to advertise though...
I can basically print money by advertising HebTroCo smartly on Facebook. The amount I spend directly relates to sales it will generate. I dial it up and down depending on how much we want to sell.
A couple of friends do the same, work quietens a bit, so they pay FB some money, within a few days they're fully loaded again with new customers..
Would their sales suffer if they stopped all advertising for a year and gave the savings to charity
If ALL brands did it? I think that established brands would begin to dominate and smaller brands would disappear because fewer and fewer people would have heard of them.
If ALL brands did it? I think that established brands would begin to dominate and smaller brands would disappear because fewer and fewer people would have heard of them.
That's why I asked about big, established brands and not new companies or new products. Coca Cola for instance don't release a new drink every 6 months in the same way Samsung release a new range of updated phones
Coca Cola for instance don’t release a new drink every 6 months
But they are locked in an eternal battle with Pepsi etc for market share.....
I can basically print money by advertising HebTroCo smartly on Facebook.
..or by sponsoring confession related Twitter accounts?
..or by sponsoring confession related Twitter accounts?
That’s because FB is paying so well we can afford to support things that we like and bring new people in. Though are much less effective in terms of ROI. Nice though!
Ask the bike co’s that don’t get reviewed because they don’t spend on advertising.
out of interest, has that ever been proved? the MBUK I have here has no adverts from any bike companies that have a bike in for review.
I can basically print money by advertising HebTroCo smartly on Facebook. The amount I spend directly relates to sales it will generate. I dial it up and down depending on how much we want to sell.
This is sarcasm right? Or is it just stealth marketing?
I advertised a few times on FB and got precisely nowt from it.
Facebook advertising is brilliant because you can target it so precisely, then analyze your targetting and hone it further
I know they say you can do that, but I found from a bit of digging their targeting wasn't anywhere near as good as claimed. Given how scummy/scammy they are as a company it doesn't really surprise me.
But they are locked in an eternal battle with Pepsi etc for market share…..
That's an interesting one...
It's like an automatic conversation whilst in any fine artisan eatery..
Litteraly anywhere:
Discerning gentleman: "I say, good man, I should very much like a double Kracken and coke"
Barkeep: Is Pepsi ok?"
Discerning gentleman: "yeh, whatever"
How have Pepsi managed to stitch that part of the market up?
Regarding FB ads, they always seem to be for some kind of scam product (see loads of those!) or if it's a local business I assume they're desperately in need of work, therefore can't actually be that good!! Never seen anything that makes me want to buy it/use them (never been hit with a HebCoTro one though, obviously not in the target demo 😎)
if it’s a local business I assume they’re in need of work, therefore can’t actually be that good!
Probably the opposite. The best advice anyone ever gave me on the score was 'when you're really really busy, that's when you need to be looking for more work'. I'm stacked out with work at the moment but I'm running two different Facebook adverts
were they drunk at the time?The best advice anyone ever gave me on the score was ‘when you’re really really busy, that’s when you need to be looking for more work’
Very possibly.
It's true though
I scrunch my hand up and look through a narrow gap to only see the 'Skip Ads' icon on YouTube. That way they haven't got to me. I find adverts intrusive and unwanted and do anything to avoid them.
Does the reverse apply binners? So because I currently have no work, this is the time when I shouldn't be looking for work?
Cos that's the approach I'm taking 😛
Facebook advertising is brilliant because you can target it so precisely, then analyze your targetting and hone it further
You are Dom Cum and ICM£5
Advertising clearly works 99.9% of the time or companies wouldn’t spend time and resource on it. I like to think I’ve managed to zone it out over the years though. Most things I purchase are as a result of asking endless questions on here or finding user and professional reviews for the product(s) I’m looking at.
I was watching loops of Lost in Vegas and Honest Trailers on YouTube last night and honestly can’t recall what any of the adverts inbetween were actually for.
A couple of friends do the same, work quietens a bit, so they pay FB some money, within a few days they’re fully loaded again with new customers..
Plenty of mugs out there; aways another fool to replace the last one.
thing is, if the big companies didn't pay for all the adverts, you wouldn't get whatever you're seeing the adverts on (STW, a newspaper, TV) for the same price. You'd have to pay (or pay a lot more) for the content.
Things like coke work by constantly re-enforcing their brand message and values in your subconcious. In the summer they show ice cold coke on a hot summers day, looking all refreshing, an image which lodges in your brain. Then, when you're hot, and you nip to the shop and you're standing in front of the fridge things, you're more likely to buy coke then pepsi.
What I'm not so sure on is the brands who spend money sponsering sporting events (ie, ford having a ford banner at the side of some premiership match). Sure - there will be positive connotations etched in for some fans, but surely just as many will have seen their side take a pounding and get minor revulsion every time they see the logo again?
even more so those obscure brands, like AIA sponsoring footy teams - can you even buy anything from them retail?
professional reviews for the product(s) I’m looking at.
I expect that advertising budget is being used very effectively then..
My thoughts on this are that adverts for Coke and McDonalds etc are not necessarily to introduce you to the brand since most people already know of them (the point the op was making) but more to make you think "I could eat a big Mac right now" or "I fancy a coke". They are increasing sales that way even if it is just making you drink the stuff in the fridge and therefore having to buy more quicker.
The ones that make me wonder are big global business to business brand advertising on TV. Something the everyday consumer isn't going to actually buy. BASF used to do it and I recently saw an Adobe advert. I just can't see many People sitting watch TV then suddenly thinking, you know what I way after a graphics programme and that advert has convinced me to go for Photoshop.
I expect that advertising budget is being used very effectively then..
Not really because I don’t rely solely on them. It’s them plus user reviews and research. Anybody that buys anything based purely off an advert or professional review is a marketeers wet dream.
5lab
What I’m not so sure on is the brands who spend money sponsering sporting events (ie, ford having a ford banner at the side of some premiership match). Sure – there will be positive connotations etched in for some fans, but surely just as many will have seen their side take a pounding and get minor revulsion every time they see the logo again?
Worth noting advertising is part of a wider Marketing strategy, That strategy will determine how an advertising campaign is commissioned.
Sponsorship can be implemented with very different objectives, but even when they have the same objective, because you're dealing with brands, the performance can differ regardless.
Aon found their sponsorship of Man Utd had a positive effect, Investec found their sponsorship of Tottenham to have much less effect, they both had the same goal(s) (excuse the pun) but for various reasons they had differing results.
Doesn’t a server just randomly offer up adverts these days ad hoc completely at random?
I know they say you can do that, but I found from a bit of digging their targeting wasn’t anywhere near as good as claimed. Given how scummy/scammy they are as a company it doesn’t really surprise me.
You have to use it right. I use lookalike audiences a lot, then filtered through various exlusions to get rid of the dickheads.
Or just throw ads for ponchos at women age 35-59 who like Gin. That works well.
