joes

Standard and Poor's Whacks Advertising Companies

Ever since John Wanamaker moaned that half of his advertising budget was being wasted, but he didn't know which half, people have known that ad agencies weren't an efficient way to sell products. But they were the only way that anyone knew for most of last century.

As pointed out by Mr. Portez, agencies care about billing hours and collecting media buy cash to hold for 6 months for the interest, a good strategy when rates were good, not so hot now. If fact, very few of advertising tactics work as well as they did in the past. Mr Wanamaker might say today that 90% of his marketing budget is wasted, but he can't find the 10% that really drives sales.

I don't know what the advertising business can do in the future other than become more aware of consumer comments and try to react the reasons that people don't like what they are selling.

Psychology has always been a part of selling and new techniques of creating opinions and selling the dream are always in the works, but accountability is the key now and for folks like me that trust Amazon reviews way more than advertising they have a tough future.