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TV Advertising Effectiveness and Profitability

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Re: TV Advertising Effectiveness and Profitability

#91

Post by Cincognito »

r00fus wrote: post #78
reader_mode wrote: post #71

Earlier quoted context omitted.

And yet the most valuable car company in the world (for whatever that's worth) spends 0 on advertising and sells everything they can produce.

Market cap (ie, stock price) is not a good indicator of present value, but perceived future value. Edit: I also think TSLA isn't a car company. More like a battery company.

Same goes for app stores, what happens if google and apple ban you for whatever reason? Your company is screwed and you have no appeal or legal safeguards.

https://businesscutter.com//" rel="nofollow">https://businesscutter.com/">https://businesscutter.com//

Re: TV Advertising Effectiveness and Profitability

#92

Post by Cincognito »

r00fus wrote: post #78
reader_mode wrote: post #71

Earlier quoted context omitted.

And yet the most valuable car company in the world (for whatever that's worth) spends 0 on advertising and sells everything they can produce.

Market cap (ie, stock price) is not a good indicator of present value, but perceived future value. Edit: I also think TSLA isn't a car company. More like a battery company.

Someone here was arguing that advertising can't be measured only through impact on present sales but "good will and long term value". Tesla seemingly has good will beyond any competitors.https://prickdaily.com/

Re: TV Advertising Effectiveness and Profitability

#93

Post by scsilver »

reader_mode wrote: post #80
slg wrote: post #79

Earlier quoted context omitted.

>sells everything they can produce. That is the important part. Their production capability is limited to a level that is below current demand. It therefore doesn't make any sense for them to invest in increasing future demand until their production capability consistently exceeds the level of current demand.

But their supply is constantly expanding and demand is following right up. They have 0 ads and yet everyone knows about Tesla.

Elon is one giant ad, and he has equity. Just because its not defined as traditional advertising, doesnt mean they dont promote the brand. They have physical car showrooms with large tesla logos. They litterally spent millions to put a tesla in space...

Re: TV Advertising Effectiveness and Profitability

#94

Post by Cincognito »

Cincognito wrote: post #92
r00fus wrote: post #78

Earlier quoted context omitted.

Market cap (ie, stock price) is not a good indicator of present value, but perceived future value. Edit: I also think TSLA isn't a car company. More like a battery company.

Someone here was arguing that advertising can't be measured only through impact on present sales but "good will and long term value". Tesla seemingly has good will beyond any competitors. https://prickdaily.com/

We checked her rating and it's 4.5 or so. But it's funny, she looks like a deadbeat here because of more discerning/critical NYC Uber drivers who gave her 4 stars 50% of the time.https://trickynerds.com/

Re: TV Advertising Effectiveness and Profitability

#95

Post by sfblah »

015a wrote: post #24
ohazi wrote: post #11

Earlier quoted context omitted.

Also where "modern" "smart" platforms decide it's acceptable to chop up a video into a dozen slices and insert the same. exact. ad. in between each segment, causing half the viewers to swear off that brand for life?

Hulu is one of the worst at this, and it's astounding to me how seemingly willfully dumb advertisers can be. It makes me think that no one in this industry actually cares. You've got marketing and advertising executives commanding eight figure budgets, inventing whatever metrics they need to showcase success and protect their jobs. They pay YouTube, Hulu, Samsung, etc millions, who provide back whatever engineered me…

This is exactly the dynamic we see in my company working on search ads.

Re: TV Advertising Effectiveness and Profitability

#96

Post by potatosaur »

reader_mode wrote: post #71
slg wrote: post #60

Earlier quoted context omitted.

>Brand advertising, in contrast, works on a spread-out scale of years or decades...The actual effect that a brand advertisement has, is to add PENNIES (not dollars) to their sales every day, for the next 100 YEARS. It's a long-term investment. And for these reasons hard if not impossible to measure or control for confounders - but that doesn't mean it doesn't work!! Car brands are the obvious example of brand adverti…

And yet the most valuable car company in the world (for whatever that's worth) spends 0 on advertising and sells everything they can produce.

When I was small, the same thing was said about Ferrari. Obviously we didn't understand that F1 is marketing as much as magazine ads are. In the same way though, Tesla might not do declarative advertising but things like Musk's appearance on Rick and Morty or favourable media coverage fulfil the exact same role.

Re: TV Advertising Effectiveness and Profitability

#97

Post by reader_mode »

r00fus wrote: post #90
reader_mode wrote: post #85

Earlier quoted context omitted.

Someone here was arguing that advertising can't be measured only through impact on present sales but "good will and long term value". Tesla seemingly has good will beyond any competitors. Also Tesla is buying battery cells, sells cars and expects to have third parties supply batteries long term - how can they be a battery company ?

Same way Apple is a computer company but Foxconn does most of the building of said computers?

But Apple sells computers ? Tesla is selling some battery installations from what I saw but their core business is cars. You could claim they are valued as a software company because of FSD, but I don't really see the battery angle, they would be not be anywhere close their valuation if they were valued on that angle.

Re: TV Advertising Effectiveness and Profitability

#98

Post by enlyth »

reader_mode wrote: post #71
slg wrote: post #60

Earlier quoted context omitted.

>Brand advertising, in contrast, works on a spread-out scale of years or decades...The actual effect that a brand advertisement has, is to add PENNIES (not dollars) to their sales every day, for the next 100 YEARS. It's a long-term investment. And for these reasons hard if not impossible to measure or control for confounders - but that doesn't mean it doesn't work!! Car brands are the obvious example of brand adverti…

And yet the most valuable car company in the world (for whatever that's worth) spends 0 on advertising and sells everything they can produce.

They've done something smarter, created a cult of people that do the job for free

Re: TV Advertising Effectiveness and Profitability

#99

Post by modzu »

another effective means of increasing sales is to threaten people with violence if they dont purchase your products. of course these days thats not really tolerated. im not sure when, but i hope some day we stop tolerating the pollution of modern advertising

Re: TV Advertising Effectiveness and Profitability

#100

Post by ohuf »

hammock wrote: post #27

There is a fundamental misunderstanding (intentional or not) with these types of studies and claims. Limited-time promotions, e.g. a 10% off sale, work on short timescales that are easily measured. You can easily say what the ROI is of an advertised promotion, and it is often positive. (Side note, these promotions have a more-difficult-to-measure detrimental effect on your long-term profitability, closely related to…

... which is pretty convenient for you and guys, because if you look at it that long-term way, nobody can tell that your whole product is a useless scam
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