Video Advertising Bureau
Tom Dougherty, CEO – Stealing Share
18 October 2018
The Video Advertising Bureau recommends crap
Can you sing the Wayfair jingle? The Video Advertising Bureau wants you to believe it’s so important.
“Is the future uncertain? Nope. It’s anything but uncertain. Uncertainty requires doubt. And there is no doubt that the dinosaur agencies will disappear faster than Sears and JC Penney.”
Profitability comes in a distant second to jingles. You can read about that here.
But the gist of the story is this — “The 16-year-old Boston-based company, which started as CSN Stores, posted fourth-quarter losses on Thursday that pushed the stock down more than 20%. Wayfair’s revenue came in at $1.4 billion, beating estimates of $1.36 billion. The company posted an adjusted loss of 58 cents a share, worse than the expected 52-cent a share loss.”
Am I ragging on Wayfair? No. Not really.
Launching a brand requires advertising spending. Awareness and preference are not linked at the hip. But you can’t have preference without awareness. Wayfair’s ad spending demonstrates commitment.
However, the Video Advertising Bureau must have better case studies, yes?
According to the same article from The Street, Wayfair increased customer acquisition by 18%. But ad spending increased 43%.
This is what is wrong with advertising
Get a grip. The business world? In a word, manipulated.
Ad agencies push personal agendas. Their limited business understanding shines through.
Inside the agency world, successful advertising means winning awards. It means having funny ads that people like. It’s not about business results.
It’s obvious that the Video Advertising Bureau agrees.
Confusing activity with accomplishment
Stealing a line from John Wooden, (we are Stealing Share, after all), “Never confuse activity with accomplishment.”
Large ad spends are necessary. Getting a consumer business moving asks for deep pockets.
But it also asks for smart branding.
Wayfair might indeed have “just what I need,” but so does Amazon. Wayfair ships free but so does Prime.
The market already has what they promise. In other words — “Wayfair. We have just what they have.”
The future of mass advertising is in crisis
Spending on consumer advertising, is in a word, down. Traditional agencies are tattered and beat-up. The shriveled model of past years is gone.
Is the future uncertain? Nope. It’s anything but uncertain. Uncertainty requires doubt. And there is no doubt that the dinosaur agencies will disappear faster than Sears and JC Penney.
The future of the Video Advertising Bureau
It’s tied to agencies. However, I’m even less hopeful. It seems that the best example of successful TV advertising is a jingle. Not a successful campaign.
Smoke and mirrors? Absolutely.
Don’t do your homework. That’s the message. The campaign the bureau cites has not built business, just awareness.
Time for both parties to grow up.
The Apple TV+ service Tom Dougherty, CEO - Stealing Share 21 May 2020 Where the Apple TV+ service goes from here In this time of quarantine, streaming TV is booming. More people are watching Netflix, Amazon Prime, Disney Plus and Hulu than ever before....
NASCAR reopening Tom Dougherty, CEO - Stealing Share 19 May 2020 What the NASCAR reopening means Sports are creeping back into our lives with some charity events, UFC fights and some soccer. But many more than expected tuned into the NASCAR reopening...
JCPenney bankruptcy Tom Dougherty, CEO - Stealing Share 18 May 2020 JCPenney bankruptcy expected, COVID-19 or not When news of the JCPenney bankruptcy spread over the weekend, was anyone surprised? The retailer can blame the COVID-19 virus all it wants....