What is the real value of advertising?

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Rikkitic

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#303112 17-Jan-2023 11:21

I was just looking at some annoyances about advertising spam on another thread and that made me start wondering what the value of advertising actually is. Personally, I can't stand most ads and I usually react adversely to them. Ones that really annoy me I go out of my way to penalise. For example, I have not entered a Harvey Norman store in years. I make a point of not shopping there.

It is very rare that anything I see advertised actually interests me, but if something does, I go away and research it and the competitors and eventually I may or may not make a purchasing decision, in which case I go for the best deal, not whatever the ad told me. I like to think I am fairly impervious to advertising, though of course I don't really know. I do know a lot of money and expertise goes into it so maybe it is even cleverer than I think and I am being successfully manipulated all the time. I don't know, but I don't think so.

A lot of money gets spent on ads so they must have some measurable benefit. Does that mean everyone except me is a sucker? Everyone including me is a sucker? What is the value of advertising? How much do sales go up if something appears on TV or Geekzone? Who responds to ads? Why?

Plesse igmore amd axxept applogies in adbance fir anu typos

Silvrav

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#3022615 17-Jan-2023 11:36

I worked in retail'ish and it works - not immediately, but it works on 80% of people, so more on the people that are on social media. There is a reason (more than just the time slot) that infomercials were late at night on telli back in the day. The mind is weaker at night and the constant bombardment wears most people down.

Most advertising is also done not directly by the companies but by advertising companies that leverage the sheer amount of data they capture for good deals and pricing. Even if you don't buy anything, there is value in the data they collect from you just by browsing or signing up for their newsletter. That $5 coupon you get for signing up is basically selling your data to them, and they resell that. Same for any "Free" promos, like joining the free wifi at a shopping centre.

The threshold usually is they only need 20-30% of people to be captured by an advert for it starts making profit.

I must admit, I have bought the odd item or 2 after seeing an advert for it, but like you, I do proper research and dont necessarily buy it from who placed the advert in the first place. Did it get me to spend money? yes it did 😆

MikeB4

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#3022616 17-Jan-2023 11:36

In my early working life after graduation I worked in advertising. My experience was that the right advertisement in the right place worked. An example, we produced a newspaper feature publication (24 pages) on new housing and renovation. Advertisers reported back that they were receiving calls from customers several years later about their products and advertisement. Advertising works, maybe not for you but it is of very high value for commerce and public information.

I don't drink alcohol but that does not mean alcohol is not a valuable business. If an advertisement is in my scope of interest I will watch or read it, if not I will ignore it. Things cost money, things need revenue, advertisements supply a medium to gain that revenue so we can enjoy the products and services we enjoy.

sir1963

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#3022626 17-Jan-2023 11:47

Rikkitic:

I was just looking at some annoyances about advertising spam on another thread and that made me start wondering what the value of advertising actually is. Personally, I can't stand most ads and I usually react adversely to them. Ones that really annoy me I go out of my way to penalise. For example, I have not entered a Harvey Norman store in years. I make a point of not shopping there.

It is very rare that anything I see advertised actually interests me, but if something does, I go away and research it and the competitors and eventually I may or may not make a purchasing decision, in which case I go for the best deal, not whatever the ad told me. I like to think I am fairly impervious to advertising, though of course I don't really know. I do know a lot of money and expertise goes into it so maybe it is even cleverer than I think and I am being successfully manipulated all the time. I don't know, but I don't think so.

A lot of money gets spent on ads so they must have some measurable benefit. Does that mean everyone except me is a sucker? Everyone including me is a sucker? What is the value of advertising? How much do sales go up if something appears on TV or Geekzone? Who responds to ads? Why?

Ad blockers

Hosts file to kill off trackers, scam sites, etc

Don't watch free to air TV (can't stand the adverts)

Junk mail gets recycled before it even gets indoors

Don't subscribe to any news papers

Senecio

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#3022629 17-Jan-2023 11:51

Advertising works, I don't like it but it does. Like you I like to think I'm relatively impervious to it, but I know that I'm not.

The business that I've just come out of made the call to reinvest in its brands and direct more spend to advertising back in 2019 after being quiet on TV and other mediums for a number of years. The result was a return to double digit year on year growth after 3 consecutive years of declining revenue. It is a complex and thoroughly interesting topic when you start to spend some time with people how specialise in the field.

MikeAqua

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#3022644 17-Jan-2023 12:16

These days, very little advertising reaches me.

Other than via Geekzone, pretty much the only way you're reaching me is during live coverage of a sports match, or a poster on something I walk/drive past. Or via email.

Even, then I severely limit what email reaches me.

Mike