Personally, it has always struck me that half is wildly optimistic. Still, (frustratingly) it seems the case that some marketing is correlated with some success in business.
But that’s it, correlation. Giants with overwhelming distribution also have overwhelming marketing spent. And tons of leverage over smaller copetitors and parters that can be use to abuse them.
There is a fairly good evidence that marketing works at awareness phase - as long as you need to inform people that you exist, it works. Once you pass this threshold marketing increase the sales, but not on the rate that justify the cost. Every natural experiment (when the ads were not launched by accident in some region or chanell) suggest brands like Coca-cola are loosing money on their marketing. It’s a chinken game mixed with the king is naked game, where no one want to be a guy who say “maybe you pay us too much”. Aka bubble.
Personally, it has always struck me that half is wildly optimistic. Still, (frustratingly) it seems the case that some marketing is correlated with some success in business.
But that’s it, correlation. Giants with overwhelming distribution also have overwhelming marketing spent. And tons of leverage over smaller copetitors and parters that can be use to abuse them. There is a fairly good evidence that marketing works at awareness phase - as long as you need to inform people that you exist, it works. Once you pass this threshold marketing increase the sales, but not on the rate that justify the cost. Every natural experiment (when the ads were not launched by accident in some region or chanell) suggest brands like Coca-cola are loosing money on their marketing. It’s a chinken game mixed with the king is naked game, where no one want to be a guy who say “maybe you pay us too much”. Aka bubble.