I participated in a volley of comments over at Church of the Customer earlier this week on the dimnishing returns of traditional advertising. Ben McConnell made this statement:
…advertising isn’t dead; it’s been commoditized. That renders a lot of its value obsolete.
That’s a powerful statement. Is it an overstatement? Probably, well maybe… I guess it depends on how you look at it. Advertising can be a commodity. Are you buying advertising on a TV station just because of it’s mass reach, then it’s a commodity. Are you buying advertising during a specific television program that reaches the market segment you’re targeting with an ad that includes a message they want to hear? Is that TV ad part of a holistic marketing plan? (Which Ben recommends, implying he hasn’t lost total faith in advertising.) If that is the case, then I do not believe it is a commodity.
Anything can be a commodity. Some people undersell their offerings because they believe they’re selling a commodity. In fact, there are probably an incredible number of opportunities to buy “commodities” and turn right around and sell them as valuables. Many people have become rich this way. The experts on Antiques Roadshow could probably find many fortunes in flea markets and garage sales.
If you’re a baker, you take the commodities of sugar and flour and create a valuable wedding cake. If you’re a manufacturer, you take the commodities of raw materials and create a valuable product.
My point is (as I sit here and try to remind myself of my point) that if you want to buy advertising, you need to become an expert appraiser of media spots (or hire one). Otherwise, you may end up paying a premium for a poor imitation, AKA… a commodity.
please,
change these feet in the header.
Thanks for sharing your keen insight Jens. We’ll see what we can do to keep you happy.
Dustin
I think Ben is falling prey to Tar Baby Syndrome.
Tar Baby Syndrome is the way in which thrashing about in opposition to something keeps one attached to the source of the conflict. The idea is taken from the Joel Chandler Harris story in which Brer Rabbit, in his hubris and anger, punches and kicks at the Tar Baby, becoming increasingly stuck therein. As Ken Wilber puts it (from memory so not 100% on every word here,) “Problems can’t be solved at the level upon which they’re created.”
It seems to me that ‘advertising’ in Ben’s vernacular is synonymous with ‘media buys.’ The new agencies, like Attik, CP+B and others, claim to be ‘media-agnostic.’ which means that the tools Ben seems to think are so novel (forums, blogs, online communities, etc.) are just one of many in a set that is used to serve the story. They’re (these new agencies) even going so far as to buy and own the content itself, allowing them to charge an even greater premium for their prescience in securing the juiciest intellectual property.
Oh, and it would appear Ben DOES imply he’s lost all faith in advertising when he says, “Build a plan to rededicate all advertising budgets toward bolstering existing customer relationships, improving product and service quality, and creating collaborative marketing programs with customers.”
“All” advertising budgets?
Mal,
Sorry for the delayed response, but I wanted to give myself time to review Ben’s comments in entirety so as to not misrepresent him unfairly (as opposed to fair misrepresentation I suppose).
I would agree that statements like “rededicate all advertising budgets” and “The advertising virus has mutated so much that we have no choice but to develop a general-purpose immunity.” are pretty extreme. It indicates that I am not in complete agreement with Mr. McConnell. Like you, I believe that good creative can aid tremendously in breaking through the clutter. Still, with certain media channels being ignored at an escalating rate (first mute buttons, then TiVO and satellite radio), alternative “channels” must be considered.
That is pretty much how I have presented WOM to clients, as an alternative channel. I tell them that it does not replace radio, TV, print, online, or outdoor advertising… it is an expansion of these media outlets. If marketers view it as such, then I believe they can craft a more holistic construct of their marketing strategy. My inclination would be to believe taking the best WOM campaign structure and inserting horrid creative would end up damaging your product, earnings, and overall brand instead of improving it.
That being said, creative individuals should embrace word of mouth as a new avenue, but they should also be aware that WOM works best as a two-way street. You cannot just be a broadcaster of WOM, you should be a receiver as well.
I could understand the words- ‘ads as commodity’ with the help of your blog. Actually I need to give a seminar on this topic
-Thank you so much
Great post. Very informative and well written. Thanks for sharing your insight.