Sorry for the lack of blogging, things have been crazy at Ad Oasis. 6D Marketing is gaining attention and the phones are ringing off the hook. I encourage all of you to be a fan of our facebook page, it will keep you update on the happenings of Ad Oasis and 6D Marketing.
Last time we talked about Neuromarketing and briefly brought up advertising cost. In 2005 U.S. Corporations spent more than $7.3 billion on consumer research, and in 2007 that figure rose 39% to $12 billion: in just 2 years.
All this money is spend on advertising and research, but how much of what we see, do we retain? We are over whelmed with advertisements. By the time the average consumer reaches 65, they will have seen nearly two million commercials. That is equivalent to watching eight hours of ads, seven days a week for 6 straight years. Needless to say, we as consumers are numb to advertising.
As you know, advertising has changed and continues to change all the time. The challenge is always, how do you reach consumers and get them to remember you ad over your competitor. Some more figures for thought: It took 38 years for radio to reach 50 million Americans. It took 13 years for network television to reach 50 million Americans. It only took 3 years for the Internet to reach 50 million Americans!
MEET TODAY’S NEW CONSUMER
“The new consumer transcends age, ethnic group and to some extent, income! Their style of consumption is so distinctive. They’re consumers rather than buyers. These differences influence every aspect of t heir lifestyle.”
They are immune to ineffective advertising. In 1965 a typical consumer had a 34% recall of commercials and by 1990 that figure had fallen to just 8%. A recent telephone survey of 1,000 consumers found that the average person could name a mere 2.21 of the commercials they had seen.
Let’s look at two case studies. In 1949 Circuit City opened it doors and quickly becomes the 2nd largest U.S. electronics retailer with 567 Superstores.
In November 2008 they closed 155 stores after they filed for Chapter 11. Then, in January 2009, all the remaining stores are liquidated. What happened? Circuit City failed to continuously build up their brand throughout time.
The second case study is Best Buy. Best Buy opened their doors in 1966 and after a series of acquisitions and growth, they now operate 1,150 stores. Best Buy’s revenue for the fiscal month ending January 2009, rose 4% to $7.5 billion. Despite all the difficult and ever-changing retail landscape, Best Buy has continuously increased brand awareness in interactive environments. According to Best Buy’s customers, their brand represents: Excellent product assortment, satisfactory pricing and convenience.
The questions remain: If all this massive amount of money is being spent, why is there so much failure? What really drives consumers to make the choices they do? What really causes them to choose one brand or product over another? What are shoppers really thinking?