Graphing the Limits of Advertising

January 4, 2008 at 4:46 am Leave a comment

How much can an established company (Coke, Pepsi, Toyota) benefit from advertising their flagship product?

Even though someone there feels that it’s totally necessary, can they ever realize a return on investments above and beyond what they already have?

If there’s a limit on potential revenue from a single customer (and their immediate friends and family), the graph probably looks like this:

Advertising

Advertising will give an immediate gain in revenue and then eventually level off. Why?

On the web – a banner ad becomes part of the noise. If it’s not clicked on the first (or second, or third, or fourth…) impression, it is likely not going to be clicked on for the next impression.

On TV – unless my needs change, or I become part of a different market, it’s simply a break in what I’m really interested in (the show).

In print – *turning the page*….

On a billboard – I’m in my car going somewhere else, and probably can’t re-route myself to Tourneau to pick up that new Rolex.

Within a show/song/etc (product placement) – With so many messages happening at the same time, what stratusphere is the advertising floating in?

Advertisements

Entry filed under: advertising. Tags: , , , , .

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Business analysis with a marketing, technology, and entertainment slant. Anything is fair game so long that it is interesting.

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