February 26, 2011
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Charlie Sheen just lost his sweet gig because of his recent radio rant, which led the network to cancel the show. Too bad, Sheen will have to kiss his fat $1.2 million/episode paycheck goodbye. Now, that’s a sweet gig by anyone’s standard. I would like the network to replace Sheen with another actor for $200,000/episode (which is still a sweet gig for 99% of the population) to save the advertisers $1 million/episode. Sheen is probably the best actor for this role given his mirroring lifestyle and will get the show more ratings and its advertisers more sales. But we all know in business, what matters is profit not revenue. The advertisers might have more revenues with Sheen, but they would have to get more than $1 million in sales per episode to get better profit with Sheen. Finally, it’s not at all certain that this advertising generates a positive return. If it did, then why would any company ever cut advertising spending? … read more
February 5, 2011
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A 30-second spot during this year’s Super Bowl is around $3 million and they are all sold out! There’s no doubt it can be a great marketing venue for certain companies. But I really don’t think all companies are getting their money’s worth here. I think it’s more useful for small to medium companies that have a strong product and they know if you can get the word out there, they will succeed. Then the cost to build a brand might be worth it. Also if a big company is bringing out a new product and wants the public to know it, then i think it might justify the cost.
But I can’t find the value in making very general ad (nothing about a new product) just about your brand for a large well known company whose brand is already well established. For MacDonald’s or GM to spend $3 million to make a very smart ad, that’s so entertaining I feel like I should be paying for it or some boring ads should be buying slots during the funny ads, I ask myself is that really going to bring new customers to MacDonalds’s if that person hasn’t walked in after seeing it everyday on every corner. Likewise, GM ad is not going to make me a buy a GM now. I might keep GM in mind next time I buy a car, but I was going to consider GM anyway since it’s a major brand. If I wasn’t going to, I don’t think this ad will make a difference anyway. I think the real winner here is the Ad agency. Now go watch these ads and then buy some Doritos.