Frager Factor

Tuesday, February 11, 2014

==> The Advertising Success Story That Doesn't Believe in Advertising


What’s up with amy VIP mailings lately?

They work as evidenced by the record week we are having with more readers in a single day then we had all of our first three months blogging online COMBINED.

Try marketing. You’ll hate doing it but love WHAT IT DOES FOR YOU.

And when I say marketing, I don’t mean advertising. So let’s end the week with a simple way to help you appreciate the difference:

THINK – what’s the top brand in the world?





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, according to the gold standard of brand valuation, Millward Brown’s Brandz report**, 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 IBM 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. 
A brand is more than advertising and a logo. It’s defined as a "promise" between product and buyer.

But that promise goes beyond features, benefits, and "information" into story.

The story is at the heart of branding.

And it cannot be achieved in the same way via brand advertising as it once did.

 "Cheap Interaction" includes information gathering and conversation with peers. In many cases, consumers (like you and me) are telegraphing that we value our peers say-so than the claims of advertising no matter how cleverly and ubiquitously delivered.

That word of mouth becomes, of course, the "story" of a brand. That is not new. The brand story that is crafted behind the scenes by marketing and communications specialists pales in comparison to the version of that story which people share with other people.

And now, we have a digital network(s) to amplify that WOM and story.

Brands that look beyond traditional marketing towards engaging customers in two-way conversations will have an advantage going forward.

Brands that try to be of-use to their customers even if that means expanding the core products and services they provide (look at Nike) will have the advantage.

Brands that think innovation is a new delivery channel for advertising will not gain advantage.

Read Harvard Business Reviews “The Shrinking Advantage of Brands”:
And have a GREAT Weekend.


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"The single biggest cost website owners incur is the invisible cost of sales being lost". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . . . . . .

Guest Book (wk of 2/18/08)**:CBS; ITT; IBM; Microsoft; eBay; Apple; SUN MICROSYSTEMS; VMWARE; Google; Name Media; Marchex; Oracle; Hewlett-Packard Company; Dell; Xerox; Texas Instruments; Tribune Company; Chicago Mercantile Exchange; Accenture; Goldman Sachs; JANNEY MONTGOMERY SCOTT; Morgan Stanley Group;  WELLS FARGO BANK; Salomon; UBS; Ernst Young; Bear Stearns Security Corporation; Merrill Lynch and Company; Harley-Davidson; Computer Sciences Corporation; Fuller Theological Seminary; University of Tennessee Computing Center; MAERSK DATA; Holland America Line; Opal Telecom; Dow Jones-Telerate; BLISTEX; State of Georgia; IRONWARE TECHNOLOGIES; Woori; STATE OF NEW JERSEY; TE Data (Al Qahirah); University of Jyvaskyla; Arraial.Net Informatica e Internet Ltda; Banaras Hindu University; Naval Ocean Systems Center; ISOMEDIA; University of North Texas; Multrix Benelux B.V.; The Sidereus Group LLC; Claremont Colleges; Kuwait Electronic and Messaging Services Company; Moray House Institute of Education; Strachan Shipping Agency; East Tennessee State University; Karneval Media (czech Republic); Digidox; MobileOne Ltd (Singapore);Administracion Nacional de Telecomunicaciones; Moray House Institute of Education; The London Institute; ; Phonescope; East Tennessee State University; Global Crossing; ipHouse; MVCI STREAMSIDE AT VAIL; destiny;  Domino's Pizza;  Lear; Bank One;  Dynamic Logic, Inc; GNA Corporation; Sears Direct Response;; University of Chicago; Ontario Hydro; Perpetual Entertainment; INTERNET BROADCASTING SYSTEMS; Current Media;  Openface; Open Text Corporation; CITRIX SYSTEMS; State Farm; Alcatel; WPP Group USA; CRISPIN PORTER & BOGUSKY; Martin Agency; DDB Worldwide; OGILVY; MindShare; Chiat Day;  POWERCOMM; Infocom Technologies, Inc; PC LENDER; CityNet; CIHS; JSC WTC Moscow

This communication is declassified from Frager Factor VIP Feb 22, 2008.

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About The Author: Owen Frager is an Internet marketing expert ready to help take your company to the next level.

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