7
Jan

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I had a thought last night before I turned the lights out.

“Why don’t easy purchase decision products advertise more frequently?”

I was thinking about it, what businesses typically advertise the most and are the easiest purchasing decision (under 20 dollars)? I came up with a list:

  1. Unilever 2.1 billion: The biggest mediums are network TV, accounting for $300 million, and magazines, $219 million. I can see most of these being branding campaigns with little call to action, newspaper inserts (which we know are loosing circulation), and new product launches.
  2. Johnson & Johnson 2.3 billion: Focusing its efforts on network TV ($468 million) and magazines ($316 million), the company’s top spending on brand name ads was for Tylenol ($156 million), Neutrogena ($152 million) and Aveeno ($121 million).
  3. Walt Disney Co. 2.32 billion: Most of its spending by far is used to promote its Buena Vista movies ($441 million).  (tickets)
  4. Procter & Gamble Co. 4.9 billion: With three huge ad mediums totaling over $800 million each – cable TV ($809 million) magazine ($839 million) and network TV ($967 million) – Procter & Gamble is the biggest spender by far. With 4 brands over the $200 million mark (Olay, Crest, Gillette and Pantene) the long list of notable brand names under Procter & Gamble’s corporate belt understandably makes for huge ad spending.

The retailers that sell their products advertise much less because the margins are not built in their favor. Retailers know they must indicate they have have the product, but they leave the description and branding to the manufacturer.

Here is where I see the retailers, both large and small, retaking control of the broadcast mediums. With social media being so cheap, retailers can now increase margins by using just-in-time broadcasting to increase purchase conversions. They in turn can request better pricing through volume from the manufactures and either increase profits, or lower prices and increase market share.

Retailers can harness just-in-time broadcasting through social media and reach more customers when they are making an easy buying decision.

Here’s an example: I’m in the mood for a sandwich for lunch. At 11:30 I start thinking about my options. I could go to the heavily branded Subway down the street where I know I will get a decent sandwich for $5, or I could look around for a local place to eat with the potential of paying more.

Now lets try the example again with social media. I’m hungry at 11:30. I’m also following my favorite local grocery store on twitter. I want to spend $5 on a sandwich. I know I can go to Subway, but right as I am grabbing my jacket to go, I get a message on twitter from the grocer saying they have a special on sandwiches for $5. I know their sandwiches are good and I like to keep it local, so I buy from the grocer and also pick up a few things while I’m there.

This is the power I see as marketers in social media. Relevent, time sensitive calls to action.

Category : Social Media Marketing