Why Adidas stops with TV advertising

by Stephan

TL; DR.

Media agencies don’t advise you with full transparency. People think TV ads give you exposure because you see them. Wanna talk about exposure? Social media yields exposure and interaction and provides you qualitative, measurable data for a third of the price.

300 TVCs a year.

There was a time I worked at JWT, and we made about 300 TV commercials a year. The clips we edited into a commercial we called “movies”. At the time, it wasn’t crazy to assume such a production would cost at least 100k, but could easily go up to ten times that number. And then it had to be aired, which again cost threefold. Who would dare talk about a little video at the time?

We, “creatives”, were seen as the Picasso’s, and the media agencies as gentlemen. As a customer you had no other choice, because how else could you justify spending outrageous amounts of money on something you didn’t even know would return your investment? If something is very expensive, you can either reject it, or go look for something to confirm your bias towards it.

The advertising agency is super creative, and the media agency always gives a discount.

Yes the media-agency always gives discounts, but you also know that they want you to advertise on television, then advertise on every single abri in the country and after that advertise with banners on websites your target audience isn’t even remotely reachable. Why? Because their tools indicate that you really should be there, not because they make a fortune.

Have you read the Panama Papers? You should. Because you’ll be cured of the idea that media agencies advise you with full transparency. Do you think your advertising agency is really that good, because they actually are? Or because they produce a commercial that is so costly, you have to back them up, because your own credibility would go down the drain?

A little calculus.

Imagine you spent 1 million on one TV commercial. You pay your advertising agency 200k for designing and producing. You pay your media agency 800k for broadcasting it (discounts included, of course). You achieve about 900 GRPs, which means you may reach 3 million people about 3 times.

Now you come to Belly & Brain. The first thing we say: keep 400k in your back pocket. Go to a 3-starred restaurant, have a lovely dinner and order the most expensive wine. There you go, 400k, you’ve deserved it.

Then you spend half of the 600k on social media buying (Facebook, Instagram). With the other half you produce highly relevant content for each sub target group you want to reach. Not just one film, maybe five, plus picture posts, text posts, giveaways, etc. You’ll reach 3 million people about 15 times. Something to keep in mind: the video ad’s attention span on social media is 82% higher than on television (according to Smartbrain research). Interactions, likes and conversion rates are many times higher.

So the question is: Do you still think television advertising is the bomb? Dream on, waste money. If not, then start rethinking advertising with us.

In need of a second opinion? Curious what we can do for you? Don’t hesitate to contact us.
Call Stephan Pröpper (+31 6 55 82 57 86) or call Rob van Beek (+31 6 22 97 18 44).

Sharing is caring.