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by anonymous908213
127 days ago
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> I am a skeptic that one more Coke Cola ad aired at the Super Bowl meaningfully changes sales It actually might. Coca Cola had $48b revenue last year, or in other words, 4800 millions. Spending 7 of those millions to put your product in front of 100 million people seems like a reasonable bet. If even a couple percent of those people are (sub)consciously influenced to pick up a 12-pack the next time they stop by a store when they might otherwise not have, it would likely be a profitable endeavour given the profit margins on their sugar water. I think there's also a longer-term status play at stake. If only one of Coca Cola or Pepsi engaged in flashy advertising to this degree, it might give them a slight edge in status perception. In the long term, even an 0.1% shift in consumer preferences between Coca Cola or Pepsi would shift significantly more than 7 million in value. So if one of them engages in this, the other is obliged to follow, in a classic prisoner's dilemma. At any rate, given that 4800 millions in annual revenue translates to 13 million in sales per day, the number paid for that advertisement is a rounding error and doesn't have to move the needle very much at all to be successful. |
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