this post was submitted on 15 Jul 2024
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I was just talking about this the other day. I think Coke and some companies have reached a saturation point that makes advertisements useless.
I dont know if we have any data to model off of, but I'd love to see if their profits dip by any meaningful amount if they stopped advertising for 3 months straight. Let the movie theaters, and the restaurants, and the culturally embedded soft drink preferences do their thing and see if the dial moves.
I don’t think they would keep investing in marketing if they didn’t know if it worked. I’m just guessing, but I believe there’s a noticeable bump in sales after a successful marketing campaign.
And that's what I think they're failing to measure. I think they're unable to accurately divorce the increase in sales from other incentives/market forces, and so they're just doing what they've been doing regardless of actual merit, or the merit is being improperly evaluated
Coke keeps running ads because that's how they keep the brand as a cultural staple. They aren't trying to sell more coke right now, they're making sure that people in 50 years will still be buying it.