I know, it's bonkers that people hold this position when so many startups live and die by their customer acquisition rents.
Do you think startups like Casper and Blue Apron want to hundreds of dollars just to get a single person in the door to buy something and pray they stay for at least 6 months / don't return the thing just so they can hit their break-even point? Like if this was all a house of cards it would have collapsed by now since there are millions of eyes trying desperately to reduce the need for their ad spend.
So yeah, that quirky overproduced Doritos TV ad probably isn't doing all that much but for businesses that don't already have a critical mass of mindshare it's your lifeline.
It's definitely important for Doritos. Walk into a convenience store and you'll see a bazillion brands of chips, most of which are healthier or tastier than Doritos. Yet time and time again people go for the old faithful brands. You stop doing brand advertising, that dries up.
Blue Apron seems like a terrible example - their stock has collapsed by over 90% from IPO. And they were actually doing worse before the covid-19 crisis.
Do you think startups like Casper and Blue Apron want to hundreds of dollars just to get a single person in the door to buy something and pray they stay for at least 6 months / don't return the thing just so they can hit their break-even point? Like if this was all a house of cards it would have collapsed by now since there are millions of eyes trying desperately to reduce the need for their ad spend.
So yeah, that quirky overproduced Doritos TV ad probably isn't doing all that much but for businesses that don't already have a critical mass of mindshare it's your lifeline.