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Pepsi is an interesting case for the ineffectiveness of advertising in general.

I find it hard to believe that television or other advertising for a product like Coke or Pepsi makes a big difference in sales. I'm already aware of the products, I already have my opinions on them, and they aren't going to change them.

If these companies stopped advertising tomorrow I don't think there would be an immediate effect on consumer behavior.

For a while I was a heavy drinker of low carb Monster. One day I saw the can, thought I'd try it, decided I liked it, and then I bought it frequently.

I hadn't seen a single ad (or promo) for Monster until years after I'd gotten sick of it.

What would happen is that the channels they sell through would notice that they weren't being so aggressive about marketing. The channels might think they are less serious and then they wouldn't work so hard to promote those products.

I know somebody who sells newspaper advertisements and when people ask the question "For what a postage stamp sized ad costs in the paper for a year I could rent a storefront or hire an employee so why do I need to spend money on you?" he gives them the answer that people who are used to seeing your ad in the newspaper might think you went out of business if the advertisements stop.

That's how sick the advertising business is in 2013.




An interesting anecdote...when I was in middle school, an account exec for McDonald's came to speak to our class. He told us that in our local market, McDonald's Corp wasn't convinced that the TV and radio ads were having a significant effect on buying behavior. So for one day, they pulled the ads in that market. They found that sales absolutely plummeted in that day, so they scrambled to reinstate their regular ads and all was well. Of course this is anecdotal evidence, but it made a big impact on my middle-school mind :) Everyone thinks they're not affected by advertising.


I find it hard to believe that television or other advertising for a product like Coke or Pepsi makes a big difference in sales. I'm already aware of the products, I already have my opinions on them, and they aren't going to change them.

I feel the same way about beer. I love beer commercials... they are usually absolutely hilarious, and I often literally LOL at them. During football season, when I'm hanging with my friends at the sports bar watching the Dolphins play, I look forward to the commercials so we can have a group laugh over the latest ads from Budweiser, Coors, Michelob, etc.

But... 2 minutes after a given ad airs, I could not tell you if it was an ad for Coors, Michelob, Budweiser or "other". Well, ok, the Keystone ones do stand out a bit in my mind. But in any case, NONE of them give me the slightest inclination to drink their respective brand of beer. I already regard all mainstream, mass-market American beers as being roughly equivalent to stale horse piss, and all the funny commercials in the world aren't going to change that.

My staple beer is Sam Adams, which I usually drink unless a given bar has a microbrew I happen to like. And I was drinking Sam before I ever remember seeing a commercial for it. How'd I find it? A bartender recommended it to me once, I tried it, liked it, and that was it.


>>>>> How'd I find it? A bartender recommended it to me once, I tried it, liked it, and that was it.

This is the angle social media attempts to replicate. Leveraging respect levels between you and your social "circle". Sometimes it works with great effectiveness, but a majority of the time, I believe this approach fails.


>>I find it hard to believe that television or other advertising for a product like Coke or Pepsi makes a big difference in sales. I'm already aware of the products, I already have my opinions on them, and they aren't going to change them.

Companies don't engage in the marketing bombardment of certain brands to remind you that they exist or to change your opinion. For 'commoditized' consumer products like cola or light beer, there is a premium placed on being 'top of mind.' https://en.wikipedia.org/wiki/Top_of_mind

I am not a frequent consumer of soda or light beer. However, on occasion, when I 'have to' purchase it (for a party, picnic, barbeque, etc.), I find myself subconsciously steered towards certain brands. which I believe is the result of years of 'conditioning' from constant immersion in uqiquitous marketing.

>>If these companies stopped advertising tomorrow I don't think there would be an immediate effect on consumer behavior.

Not immediately, but in due time absolutely. Why else would Coca-Cola spend $11 billion on marketing last year? http://beta.fool.com/stockcroc1/2012/04/13/coca-colas-new-co...




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