David Ogilvy's old saw, "I know that half my advertising works, I just don't know which half," has become less of a joke these days, with CMOs desperate to show CEOs that their multimillion-dollar ad budgets actually produce results. That's one reason ad money is migrating to the Web: those nice, quantifiable click-through numbers are a more concrete measure of an ad's ability to drive action than the amorphous impressions from a 30-second spot (that may or may not have fallen victim to Tivo or a hasty beer run to the 'fridge. )
But we recently turned up another, pretty clever, way to measure ad value. Call it the eBay Index. It works like this: Create an advertisement that features some otherwise worthless tchotchke that's identified with your brand. Limit said trinket's availability. Watch and see what kind of price the thing can ring up on eBay.
The results can be astonishing. Witness the price that the VW GTI's goofy gremlin, The VW Fast, is currently commanding on eBay. The gadget, a demonic-looking plastic toy that's a little bigger than Mr. Potato Head and has removable tails, but otherwise does nothing, is listed right now for $510. Given that this thing wouldn't sell for more than, say, $10 at Toys 'R' Us, the remaining $500 is strictly a measure of the buzz -- and desirability -- generated by the product's advertising created, in this case, by the hot Miami ad shop, Crispin Porter Bogusky.
Their campaign for the car, featuring the 'Fast' and a couple of wacky faux German researchers, has whipped GTI enthusiasts into a frenzy. No matter that the New York Times recently panned most of the company's recent product line. In this case, advertising is trumping engineering in creating value.
Tell that to your skeptical CEO.
Related Stories: | Topics:Management, advertising + PR, eBay Inc., Volkswagen GTI, David Ogilvy, Mr. Potato Head Merchandise, Miami |
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Recent Comments | 8 Total
March 29, 2006 at 1:35am by roger fulton
yeah, right...you're also talking about a nation that idolized hula hoops, the Beverly Hill Billys,
The Gong Show and elected a wrestler to the state house, so what gives? Marketing can make profits and make goofs out of us all. Slinkeees in every living rooms, pet rocks on leashes, TVs in ever bedrooms and cotton candy for brains. So what?
Market me this: make the kids I teach in class rooms CARE about what they learn. Today a twelve year old told me her hero was Hitler and her mother wet the belt she beat her with because it made the welts deeper.
For this I spent six years in Wharton.
Roger Fulton
Yuma, Arizona
March 29, 2006 at 9:16am by David Armstrong
Wow..interesting comment...I think I agree with the deeper message.
But here is my take...companies should put more money into the product, design and usability and less into the "scam".
e.g. I bought the RAZR phone and it sucks...I haven't found one person that likes it. So...they got my money once...but never again.
When will Corporate America say "long term profits is what we care about."
March 29, 2006 at 9:54am by Snake
I thought it was John Wanamaker that said that about advertising... but don't let the facts get in the way of blogging.
March 29, 2006 at 9:55am by Lee
Wasn't it Wannamaker not Oglivy who famously stated, "I know that half my advertising works, I just don't know which half."
March 29, 2006 at 4:50pm by Mike
>When will Corporate America say "long term profits is what we care about."
Corporate America DOES care about long term profits. They also know that Consumer America has short term memories and will forget the last crap product when the hype machine chugs up to full speed to hype their next crappy product.
I don't give a shit about phones that play ringtones, games, send messages, browse the web, double as a tv remote, make coffee. Want to impress me with your new phone? Make one that doesn't drop calls because I am under heavy foliage. How about one that works in a tunnel?! Actually make a product that works.
March 30, 2006 at 2:11am by Doug Hoffer
Way to go!
You folks have proven once again you ability to sift through the extraneous and give your readers another novel way to get ahead of the crowd.
Thank you.
March 30, 2006 at 10:32am by Jochen
I think the trend with branding goes back to "Quality" of the product. And the product will create the brand name not the campaign. E.g. Subaru, long lasting great car (this is what most people think) and Subaru doesn't spend millions on advertising.
Read the "Obsessive Branding Disorder" article. I like the 'new/old/revised' definition of branding!
"Branding is to communicate your key value proposition to the key customer segment, and do so in an integrated and consistent way." In other words, Business 101. So go ahead, leave your shadow alone. Run a good business, and your brand will follow.
April 3, 2006 at 11:26am by Nick Rice
I love the VW ads. The speed demon is a great way to make the invisble visble. I hadn't noticed the eBay auction. What a statement of value!