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Cost of Advertising: 2 Cents a Week

Cost of Advertising: 2 Cents a Week

FromWizard of Ads Monday Morning Memo


Cost of Advertising: 2 Cents a Week

FromWizard of Ads Monday Morning Memo

ratings:
Length:
13 minutes
Released:
Aug 18, 2014
Format:
Podcast episode

Description

Thirty-one years ago, David Ogilvy wrote, “In some developing countries radio still reaches more people than television. Yet even there nobody really knows what kind of commercials make the cash register ring. Isn’t it time somebody tried to find out?”– David Ogilvy, Ogilvy on Advertising, 1983, p. 116Sleep well, David. We found out. And by “we,” I mean the Wizard of Ads partners.As Indy points out in the illustration above the title of today’s memo, opening with a pop culture reference from 50 years ago followed by a quote from a man that’s been dead for 15 years could easily lead you to believe I’m a dinosaur left over from that bygone era when cars still ran on gasoline.Would I point out how old and potentially out-of-touch I am if I didn’t have complete confidence in what I’m about to say?A lot of business people are listening to their kids right now and getting all lathered up in the belief that the Internet has made TV and radio ads obsolete. In fact, I just received an email from a client in Syracuse who is positively fretting about the future of radio. What makes his email especially funny is that we’ve been using radio exclusively for the last 3 years and it’s made him so wildly successful that he’s currently expanding into cities nationwide.I believe in the web. In fact, I’m using it to deliver this message to you.The Internet killed the yellow pages, the newspaper and encyclopedias and now it’s revolutionizing the distribution of books and music. Born in 2005, YouTube has become a magnificent lottery that doesn’t pay its winners in cash, but with worldwide recognition and a few weeks of fame.I may be YouTube’s biggest fan. I am enthralled by it.Have you ever bought any pay-per-click ads? Shortly after Google announced their AdWords program I spent more than $100,000 of my own money just to learn what does and doesn’t work. My only goal was to get a hands-on education. I didn’t want to risk my clients’ dollars until I knew exactly what I was doing.In the end, I figured out how to drive qualified traffic to a target website for just a nickel a click. But that seemed expensive to me, so I abandoned it.The average 30 or 60-second radio ad needs to be heard by the same person 3 times within 7 nights sleep. This currently costs my clients less than 2 cents per week. In some cities, that 3-frequency costs us only about a penny a week. We can do the same for you if you want.When I talk about mass media, young advertising people often look at me with pity and scorn. I can almost feel them patting me on my head.That’s why I got such a kick out of watching a YouTube video of Bob Hoffman speaking at an advertising conference in Europe:“One of the problems with our advertising experts is that they have a free pass. They go around to conferences. They talk to the press. They write stupid blogs. And they make profound statements, and confident statements about our industry. And no one ever goes back and checks up on them… We begin our little journey in 2004, about 10 years ago… Seth Godin, the bestselling guru of marketing said, ‘We have reached the end of traditional advertising.’ He apparently forgot to tell Toyota and Coke and McDonald’s. Then Advertising Age, the top advertising trade publication in The States, said, ‘The post-advertising age is underway.’ Bob Garfield, a columnist at Advertising Age, said in 2009, ‘The present is apocalyptic. Any hope for a seamless transition, or any transition at all, from mass media and marketing to micro-media and marketing are absurd. The sky is falling. We are exquisitely, irretrievably, fucked.’ Bob is a nice guy but I really think he needs a hug. And according to the nonprofit think-tank, FutureLab, they just came out and said it, ‘Advertising is...
Released:
Aug 18, 2014
Format:
Podcast episode

Titles in the series (100)

Thousands of people are starting their workweeks with smiles of invigoration as they log on to their computers to find their Monday Morning Memo just waiting to be devoured. Straight from the middle-of-the-night keystrokes of Roy H. Williams, the MMMemo is an insightful and provocative series of well-crafted thoughts about the life of business and the business of life.