Comments on: The greatest trick the advertisers ever pulled

By: David Foster

David Foster — Sat, 04 Nov 2017 13:11:03 +0000

“But my contacts at G&Z explained that no brand manager had ever gotten promoted by cutting his ad budget.”

This would suggest that G&Z brand managers aren’t paid or promoted based on the *profit* generated by their brands.

Makes me glad I’ve sold most of my G&Z stock.

By: Crosbie

Crosbie — Sat, 04 Nov 2017 01:58:49 +0000

Taking a cue from the OCIAA, perhaps advertising spend is an elaborate way of laundering money paid by the capital owning classes in return for control of the media.

By: Faze

Faze — Fri, 03 Nov 2017 22:05:46 +0000

Steve is probably right about advertising not initiating new sales. But ads have other functions that are worth paying for. They keep your current customers in the fold by reinforcing their buy decision. That is, they remind the current customers who they are and what tribe they belong to by virtue of buying your product. This is information that needs continual updating.

There is also the theory that the audience for much advertising is the employees of the company being advertised. Seeing your own company advertised on, say, the Super Bowl give a super boost to employee pride and engagement. Advertising can serve as a form of compensation, since it enhances the employees’ status in the community.