To: brk who wrote (17179 ) 2/28/2000 3:24:00 PM From: tahoe_bound Read Replies (3) | Respond to of 28311
Brk re: ad spending Don't you think that promoting the company in the eyes of as many as possible is better than doing nothing at all and being so conservative that it creates a bigger risk of being ignored into obscurity from total lack of exposure? Many studies show that the human subconscious takes in so much information in our day and age, that it takes at least 10 messages be it sound, visual or other before a message becomes a more prominent realization and takes hold. Advertisers know this, and there are many smart companies who realize this in the corporate world, otherwise us consumers would not be constantly bombarded! They know that they have an effect, which would otherwise not be so if they just sat there, pulled in their horns like a utility company putting it all in the bank, and let whatever happens happen without giving it the best effort. Logos, branding, all of that, is very important. A lot of it can be done very cost effectively, and very creatively without going overboard and tacky. Many tech companies for example buy space on the Nasdaq board that you see on the financial channels. They supplement that with commercials, if not on the major channels then on local financial stations in some markets with a very cheap cost. Local cable advertising is very cheap, which is why the small tire shop and deli can afford it. They know that the interest in their companies will be heightened by viewers looking at their logos all the time, which will both heighten the awareness of their company, the products, and their stock which they want to go up, so they can finance more deals! I know when I think of a companies stock to buy, I will maybe see a product in a store or what have you, and go a-ha! That logo looks familiar, I've seen it on TV or in a financial or other publication, and I have heard their tune, so on and so on. It makes me more comfortable buying that stock instead of a no name that may have a great product and all, but not much visibility, which is important for investors. (Isnt it??) Im sure the same could be said of many. The Value America example you gave can be offset by many others that have gone the other way. Small businesses or large, for the most part realize that advertising is an investment, and they budget for it accordingly. It doesn't have to be exorbitant, (though the online brokers seem to think so) just realized what it is, a good investment for the "long term" visibility aspects. I might add that it is important to get the most bang for the buck, and large companies that hire image consultants in conjunction with well reputed ad or branding firms that have produced for other well knowns, will probably have a lot more success than just going it alone from scratch. As usual, just an opinion! p.s. Voting "No" on Fleck the bear on the ballot, he would probably vote to not spend a dime because of the companies valuation.