Is Brand Loyalty and Advertising to Matter? 1993 Advertising Jack Myers

It's interesting the advertising industry is going through a peaks and valley time right at the moment.

With the onset of the internet taking over alot of "eyeball time", and the economy the way it is.

I think it's going to be a time where the strong get stronger and the weak die out. This is a time when good management will shine, and bad management will be appropriately reprimanded.

I always wondered what would happen to all of the leveraged buy outs of the newspapers and Television etc.

According to this story Reports of the newspaper's demise greatly exaggerated In Canada, the country's largest publisher of major metropolitan dailies, Canwest Global Communications, is fighting to restructure its massive debt and avoid seeking bankruptcy protection. Quebecor's SunMedia has shuttered two small weeklies in rural Alberta. A year ago, Transcontinental Publishing shut down the Halifax Daily News.

Canwest leveraged up a great deal. They were doing well when the economy was going well.. Now they're heavily weighted with debt that they're having a touch time servicing. So... they're powerful when times are good, and reaching for bankruptcy lawyers when the economy is bad.

It's becoming more clear to me what happens when advertising companies leverage up like they've done for the last 20 years.


HuffingtonPost Jack Myers Note: Although we believed in 1993 that the dynamics and the realities facing the advertising industry and the media today have been materialized by the end of the last decade, the fundamental truths of my 1993 book Adbashing : Surviving the Attacks on advertising are more relevant and pertinent now. The downsizing of America is underway, finally, with a vengeance. Unfortunately, it may be too late for many who depend on advertising companies to learn and apply these lessons.

Throughout the 1980s, advertising and the media were blinded to their loss of share of total marketing communications for the growing foot size of the ad budgets to support the influx of new investment products, services and businesses.

The number of brands of cars rose from 18 in 1975 to over 40 in 1992, with several sub-brands within each product group. Instead of three to four major brands of shampoo in 1970 (Breck PRELL and controlled over 50% of the market), today there are over 100 brands, including generics. The ad budgets invested in the launch and growth of new products has been the goose laying eggs of thousands of gold for media companies and advertising agencies. In the 1990s, the hen died.

Manufacturers are reducing and consolidating its brands based on brand support of its main products - which are strong and profitable. There are fewer product introductions. New products entering the market receive less support from the media. Marketers rely on trade promotion, consumer direct marketing and sales promotion for the bulk of their marketing activities.

As an industry, advertising should focus on how marketing can improve the ability to establish and maintain brand loyalty. Second, traditional media should offer integrated direct marketing and promotional skills is a core component of your business. Thirdly, the ad industry needs to develop measurements to test the effectiveness of advertising to generate sales and establish brand loyalty.

If the notice is not the industry to achieve these objectives, business investment in advertising in a precipitous decrease over the next five to seven years. As the total marketing budgets decline, the advertising industry to capture a larger share of existing budgets. The growth of the advertising industry can no longer rely on the introduction of new products. In the era of consolidation of the product, the media must stop and reverse the erosion of their share of total marketing spending.

Articles from April 2009
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