„(The focus in short term activations) It’s value-destruction because:
- With the exception of direct response advertising, most advertising simply does not pay back in the short term
- The creation of what Binet and Field call “associations”, Sharp calls “memory structures” and Williamson calls “empires of the mind” takes time. And it’s these memories that sustain salience and preference.
- Most people aren’t “in the market” for anything most of the time (Sharp).
- These memories work by supporting prices not just by driving volumes or share. And as Binet and Field have demonstrated, pricing effects are slower to crystallise than volume effects.
- Half of advertising’s effects will crystallise more than a year later (ebquity).
- As Andy Farr has noted, “investors will pay a premium for companies with strong brands. They are not paying for past earnings: what they are paying for is the promise of future profits leading to dividend and share-price growth.”