Posts tagged CPG

Photo: jared http://www.flickr.com/photos/generated/

I asked a colleague today why do advertisers spend the money they spend on media when they really have no concept of the return on investment for that money.  It’s like the emperor has no clothes and everyone is in on it.  What’s even more scary is that we live in a world where we try and explain away those rationalizations with data… the old using data to stretch the truth gambit.

Take for example an ad for any CPG product.  You name the product. The assumption is that upon seeing an ad on TV for that product I’m going to buy it when I’m in the store.  That’s a huge gamble.  Often I try new grocery store products based entirely upon the packaging and seeing them on the shelves next to other things I buy, irrespective of advertising. 

The fundamental question I ask myself is why hasn’t the ad model moved from the mass medium of TV to a more localized medium of the store.  How come grocery stores don’t list ad revenue as a chief source of income and groceries being the cost of doing business.  Grabbing me in the moment, when I’m making those purchases, that is retail gold.  Grabbing me while I’m at home on the couch watching 24, well at best that might make me get up and grab a snack.

What’s it’s going to take to change that model?  IMHO it’ll require a store to take the lead, and a brave brand manager.  No one want to get fired for changing the 30 year tradition of blowing ad budgets on TV.