Wednesday, March 4, 2015

99% Percent of Advertising is a Waste of Money???

Television and radio advertising has for a long time claimed the title for the best reach at an amazingly convenient cost per thousand, or as we know it in the advertising world as CPM.  There is no surprise that advertising guru Tim Burt has taken a stand against the junk that floods our radio and television commercials.  We already know that if we have enough money we can place any radio or television commercial during the most profitable viewing or listening slots, and cater it to be very niche, and we also can reach a local or national audience.  Radio and Television advertising presents many options, many times, and can be tailored to cater toward the ROI (return on investment) needs that the client chooses.

So I present this question.  Why has advertising chosen to use comedy and drama as a selling point for products that have very little to do with the message in the advertisement.  Burt uses an analogy in the video above, of  advertising being like over stuffing a burrito with useless information rather than delivering a concise message that directly concerns the product and it's benefits.

I am certainly not the industry know it all, but I believe that my answer may be the consensus of most Americans.  We like a product that can relate to us as Americans, human beings with emotion, and anything that can spark enough emotion to put a tear in our eye or a smile on are face is worth listening to.  Has advertising become more closely aligned with entertainment?  Absolutely!  It's that entertainment that makes us remember a product. PRODUCT AWARENESS Mr. Burt.  That is what we are all shooting for, right.  Let's take for example the VW campaign below.

This story is about a child trying to harness the force.  This commercial obviously was targeting those that grew up in an era spanning from the late 70's up through millennials.  The message still showed products features and benefits through a story that us Star Wars nerds can relate to.  Star Wars always puts a smile on my face.  Good job Volkswagen.
Tim Burt, would you tell the General Motors Company that they are doing it all wrong.  Let me remind you that General Motors spends 753.5 million dollars on advertising and I don't think it is all in vain.  The above GM commercial relates to us college seniors as the "Best Day Of Our Lives," only to have our dreams crushed by reality.  It's a hilarious commercial though!

Radio and television advertising does have a competitor in the world wide web.  Online advertising has seen a steady climb in popularity, although, digital technology is a whole different arena and will take some time to compare to the successes of radio and television.  According to an article written by Steve Olenski in Forbes Magazine, "...almost two-thirds (62.4% to be precise) of all advertising dollars spent by the major media buyers was spent on television advertising.

The bottom line is that radio and television advertising has proven itself to be the powerhouse in the industry.  It may not always be the primary or sole medium in every campaign, but it is reliable and cost effective.

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