The Shrinking Advantage of Advertising
At Harvard Business Online, a discussion of the shrinking advantage offered by traditional advertising models:
Quick – what’s the top brand in the world? Coca-Cola? Nope. IBM? Nope. One of GE’s stable of brands? Wrong again.
All these players are near the top. But the most powerful brand in the world today is…Google.
Now, that might seem superficially logical. But from a strategic point of view, it’s nothing short of astonishing. Why? Because every other player in the top ten has spent decades – if not literally centuries, as for P&G and Coke – investing billions in advertising to build a brand.
But where these players invest on the order of 5-10% of revenues on advertising, Google’s advertising expenditure is almost exactly zero.
Stop and think about that for a second: the top brand in the world belongs to a player that…uhhh…doesn’t advertise.
The author confuses advertising with branding, when they are in fact two different disciplines. That said, we like his column, as it leads with a demonstration of the differences and surfaces a number of real world questions. And, we agree with the author’s definition of brand.
As quoted previously on this page:
Advertising…is the tax you pay for an ineffective brand.
Let’s talk if you want to further understand the differences, and how you can materially decrease and even eliminate that 5-10% expense line.
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All these players are near the top. But the most powerful brand in the world today is…Google.
In August 2007, William B. Hanbury, chief executive of
Shhhh. Longtime futurist and author Faith Popcorn warns that optimism is passé and brands that trumpet their benefits are hopelessly out of tune with consumers who are sick and tired of marketing’s noise. …Popcorn explains why she advises marketers…to build their strategies around whispers and honesty rather than hype and shouts.




In 1981, Jack Trout and his partner at the time, Al Ries, published what would become the classic book on the topic of brand positioning,