12. “[POLITICAL ECONOMY]...IS
CONCERNED WITH [MAN]
SOLELY AS A BEING WHO
DESIRES TO POSSESS WEALTH,
AND WHO IS CAPABLE OF
JUDGING THE COMPARATIVE
EFFICACY OF MEANS FOR
John Stuart OBTAINING THAT END.”
Mill
Mill, John Stuart. "On the Definition of Political Economy, and on the Method of Investigation Proper to It," London and Westminster Review, October 1836. 13
Essays on Some Unsettled Questions of Political Economy, 2nd ed. London: Longmans, Green, Reader & Dyer, 1874.
32. IN 1933 CHAMBERLIN BROKE
DOWN ADVERTISING’S
ECONOMIC ROLE INTO TWO
PARTS: THAT OF THE
TRADEMARK, OR BRAND,
AND THAT OF “SELLING
COSTS,” OR THE SPREADING
OF INFORMATION AND THE
REPETITION OF THAT
INFORMATION, AKA DIRECT.
33
Theory of Monopolistic Competition. A worthy read.
35. “I DO NOT REGARD
ADVERTISING AS “I WARN YOU
ENTERTAINMENT OR AGAINST BELIEVING
AN ART FORM, BUT THAT ADVERTISING
AS A MEDIUM OF IS A SCIENCE.”
quote from confessions
about headline size
INFORMATION.”
— BILL BERNBACH
—DAVID OGILVY
36
42. “THE QUASI-PEACEABLE GENTLEMAN
OF LEISURE, THEN, NOT ONLY
CONSUMES OF THE STAFF OF LIFE
BEYOND THE MINIMUM REQUIRED
FOR SUBSISTENCE AND PHYSICAL
EFFICIENCY, BUT HIS CONSUMPTION
ALSO UNDERGOES A SPECIALISATION
AS REGARDS THE QUALITY OF THE
GOODS CONSUMED. HE CONSUMES
FREELY AND OF THE BEST, IN FOOD,
DRINK, NARCOTICS, SHELTER,
SERVICES, ORNAMENTS, APPAREL,
Thorstein WEAPONS AND ACCOUTREMENTS,
Veblen AMUSEMENTS, AMULETS, AND IDOLS
OR DIVINITIES.”
– THEORY OF THE LEISURE CLASS
43
44. “HARMONY THEREFORE, BETWEEN
CONSUMER PREFERENCES AND THE
PATTERN OF PRODUCTION MAY SIMPLY
INDICATE THE ADAPTATION OF MAN'S
TASTES TO THE RIGID REQUIREMENTS
OF THE PRODUCTIVE SYSTEM, AND
THAT WOULD HARDLY BE A CAUSE FOR
SELF-CONGRATULATION.”
Tibor – THE JOYLESS ECONOMY
Scitovsky
45
46. “WHEN ANY SPACE IS BOUGHT, EVEN IF
ONLY TEMPORARILY, IT CHANGES TO FIT
ITS SPONSORS. AND THE MORE
PREVIOUSLY PUBLIC SPACES ARE SOLD
TO CORPORATIONS OR BRANDED BY
THEM, THE MORE WE AS CITIZENS ARE
FORCED TO PLAY BY CORPORATE
RULES TO ACCESS OUR OWN
CULTURE.”
Naomi – NO LOGO
Klein
47
47.
48. “THE PROTECTION GIVEN BY CLOTHES
IS EXCLUSIVE TO THOSE WHO USE
THEM. BUT WHEN PEOPLE ARE NOT
SATISFIED WITH A MERE COVERING
AND PROVIDE THEMSELVES WITH FINE
CLOTHING PLEASING TO THE EYE, THE
ENJOYMENT IS SHARED BY ALL WHO
MEET HIM.”
– THE NEED FOR FAITH
Sir Ralph
Hawtrey
49
49. “MARKETERS EXPLOIT THE FOCUSING
ILLUSION. WHEN PEOPLE ARE INDUCED
TO BELIEVE THAT THEY “MUST HAVE” A
GOOD, THEY GREATLY EXAGGERATE
THE DIFFERENCE THAT THE GOOD WILL
MAKE TO THE QUALITY OF THEIR LIFE.”
– THINKING FAST AND SLOW
Daniel
Kahneman
50
52. “ADVERTISING, LIKE DEMOCRACY, IS
TERRIBLE IN PRINCIPLE BUT BETTER
THAN ANY KNOWN ALTERNATIVE IN
PRACTICE.”
Richard
Schmalensee
53
53. THE RETURN FROM ADVERTISING AND
THEREBY ACHIEVING AN INITIAL SALE
MAY BE GREATER FOR A HIGH-
QUALITY PRODUCT, DUE TO THE
GREATER REPEAT PURCHASES THAT
COME FROM SATISFIED CUSTOMERS
Phillip J.
Nelson
54
54. “EVEN THE CENTRAL PLANNERS
IN THE OLD SOVIET UNION HAD
TO ESTABLISH ‘PRODUCTION
MARKS’ TO STOP
MANUFACTURERS CUTTING
CORNERS ON QUALITY.”
55
http://www.economist.com/node/770992?story_id=770992
55. ACCORDINGLY, EVEN NON-PRICE
ADVERTISING CAN LOWER PRICES,
AND THIS ASSOCIATION APPEARS TO
DERIVE IN PART FROM THE ENTRY OF
LARGE-SCALE FIRMS INTO MARKETS
THAT ALLOW NON-PRICE ADVERTISING
Lee Benham
56
56. “THE NEWSPAPER INDUSTRY PROVIDES
ANOTHER EXAMPLE OF SUBSIDISED
COMMODITIES, BELONGING TO THIS
CLASS; HERE THE SERVICE
PROVIDED TO THE PUBLIC IS
SUBSIDISED (THE PAPERS ARE SOLD
TO THE PUBLIC BELOW COST), IN
ORDER TO ENHANCE THE DEMAND FOR
ADVERTISING SPACE, BY THE
ADVERTISERS.”
Nicholas
Kaldor
57
Kaldor, N. 1950. The economic aspects of advertising. Review of Economic Studies 18, 1–27.
60. IN 2011, WEB 2.0
VISIONARY TIM O'REILLY
BLITHELY COMMENTED
THAT GOOGLE "SOLVED
THE PROBLEM POSED
BY JOHN WANAMAKER
A CENTURY AGO"
61
https://plus.google.com/107033731246200681024/posts/2NU9pZEZ5t1
61. ADVERTISING IN THE US
$114 Billion Total Ad Spend, web is 30% and growing
70
53
35
18
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
US Online Ad Spend, in Billions
Projected
62
Source: Kantar Media, IAB, E-Marketer
62. BUT THAT MONEY IS COMING
FROM PRINT, NOT TV
40
30
20
10
0
2006 2007 2008 2009 2010 2011
Online Ad Spend Percentage Print Ad Percentage
63
Source: Business Insider, via Company filings
63. ANOTHER WAY OF LOOKING
AT IT IS TO SAY THAT
ONLINE AD MONEY IS
COMING FROM DIRECT
AND NOT BRAND.
64
65. TELEVISION ADVERTISING IS
ACTUALLY GROWING
(I MEAN, NOT A LOT, BUT EVERYONE THINKS IT’S
SHRINKING. BUT IT ISN’T.)
42
41
40
2006 2007 2008 2009 2010 2011
US Television Ad Spend as a percentage of total
66
Source: Business Insider, via Company filings
66. AND THIS, EVEN THOUGH
THEIR AUDIENCE IS
SHRINKING.
4
2
0
-2
-4
-6
-8
May ‘11 June ‘11 July ‘11 Sep ‘11 Oct ‘11 Nov ‘11 Dec ‘11 Jan ‘12 Feb ‘12 March ‘12
Change in Live + Same Day Ratings; Persons 2+; Total Day (percent)
67
Source: Business Insider, via Company filings
67. SO $48 BILLION IS STILL
BEING SPENT ON TV EVEN
THOUGH THE AUDIENCE IS
SHRINKING.
68
69. THE INTERNET HAS
CAPTURED DIRECT
AD MONEY FROM
PRINT, BUT IT IS STILL
REALLY BAD AT
BRAND MARKETING
70
70. “THE WEB HAS MEGA-
OPTIMIZED THE SMALLEST
CHUNK OF ADVERTISING,
WHICH IS DIRECT
RESPONSE... IT’S NOT
INTENDED TO MAKE YOU
FEEL SOMETHING FOR THE
BRAND.”
DAVID KARP, TUMBLR CEO, JULY 2012
71
71. 81% OF ALL ONLINE AD DOLLARS
ARE SPENT ON SEARCH OR BANNERS.
http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-101112
72
72. THIS IS EVEN MORE DEPRESSING - THE
CONCEPT OF BRAND LIFT AS A PRICING
MODEL IS NON-EXISTENT.
http://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-101112
73
87. “STUDIES... INDICATE THAT COMPANIES WITH
STRONG BRANDS OUTPERFORM THE MARKET
IN RESPECT OF SEVERAL INDICES. IT HAS
ALSO BEEN SHOWN THAT A PORTFOLIO
WEIGHTED BY THE BRAND VALUES OF THE BEST
GLOBAL BRANDS PERFORMS SIGNIFICANTLY
BETTER THAN MORGAN STANLEY’S GLOBAL
MSCI INDEX AND THE AMERICAN-FOCUSED S&P
500 INDEX.”
88
BrandChannel
101. ADVERTISING IS THE EDGE OF WHAT
PEOPLE KNOW HOW TO DO AND OF
HUMAN EXPERIENCE AND IT EXPLAINS
THE LATEST WAYS PROGRESS HAS
CHANGED US TO OURSELVES. FOR ME,
THAT DEFINITION OF ADVERTISING IS
REALLY INTERESTING AND IS
PROFOUNDLY DIFFERENT FROM THE
LATEST SILICON VALLEY DEFINITION
OF ADVERTISING – WHERE YOU HAVE
PEOPLE PAY FOR WHO THEY CAN BE
Jaron Lanier CONNECTED TO....
102
102. Apologies and thanks to the source: Luma Partners. Hate the game, not the player.
