https://strategylab.ca/wp-content/uploads/2021/03/how-often-do-you-lose.jpg 1404 2100 Jeph https://strategylab.ca/wp-content/uploads/2021/07/strat-icon-2021-white-300x300.png Jeph2021-08-24 01:27:202021-08-24 16:17:43How Often Do You Lose?
https://strategylab.ca/wp-content/uploads/2021/08/were-looking-for-a-friend-not-a-salesperson.jpg 1495 2100 Jeph https://strategylab.ca/wp-content/uploads/2021/07/strat-icon-2021-white-300x300.png Jeph2021-08-18 09:32:112021-08-21 12:14:44We Aren’t Looking For a Sales Person, We’re Looking For a Friend
https://strategylab.ca/wp-content/uploads/2021/07/Path-Cowork-coasters.jpg 1518 2024 Jeph https://strategylab.ca/wp-content/uploads/2021/07/strat-icon-2021-white-300x300.png Jeph2021-07-28 14:10:302021-08-09 12:31:45The Secret to Why Path Cowork is a Magical Office Space
https://strategylab.ca/wp-content/uploads/2021/07/how-long-does-the-content-youre-creating-need-to-be.jpg 1602 2400 Jeph https://strategylab.ca/wp-content/uploads/2021/07/strat-icon-2021-white-300x300.png Jeph2021-07-20 14:10:362021-07-20 15:23:15How Long Does My Online Content Need To Be?
https://strategylab.ca/wp-content/uploads/2021/07/chop-wood-carry-water.png 1080 1080 Jeph https://strategylab.ca/wp-content/uploads/2021/07/strat-icon-2021-white-300x300.png Jeph2021-07-14 12:02:172021-07-14 12:28:07Chop Wood, Carry Water
https://strategylab.ca/wp-content/uploads/2021/07/steve-jobs-last-essay.jpg 1602 2400 Jeph https://strategylab.ca/wp-content/uploads/2021/07/strat-icon-2021-white-300x300.png Jeph2021-07-12 13:14:572021-07-12 13:55:30The Final Essay by Steve Jobs
https://strategylab.ca/wp-content/uploads/2021/03/the-algebra-of-happiness-scaled.jpg 1714 2560 Jeph https://strategylab.ca/wp-content/uploads/2021/07/strat-icon-2021-white-300x300.png Jeph2021-06-30 11:33:482021-07-12 14:23:26The Algebra of Happiness
https://strategylab.ca/wp-content/uploads/2021/05/does-advertising-actually-work.jpg 1652 2475 Jeph https://strategylab.ca/wp-content/uploads/2021/07/strat-icon-2021-white-300x300.png Jeph2021-05-15 09:52:152021-05-15 09:52:15Does Advertising Work? A Two Part Podcast Series from Freakonomics
In the United States, advertising is a $250 Billion dollar industry, worldwide, that figure is closer to half a Trillion dollars. Yes T as in “Trillion”. So, it must work right? RIGHT? Right?
Advertising OBVIOUSLY works, otherwise why would so many companies advertise?
Freakonomics likes to look at issues and ideas from a different angle, in this episode they do not disappoint. Unless that is however if you work at an agency that swears by using television advertising. If this applies to you or your company, be prepared to consider taking a different approach.
Levitt was trying to understand the efficiency of advertising and went to a large multinational company that wanted to know if their Billion Dollar advertising budget was effective or not. By the end of the story it becomes apparent that the company didn’t actually want to know if they were wasting a Billion dollar per year advertising. What you take away from the research is that for every dollar invested in television advertising you get back roughly 0.01% in sales growth. Which means the research tells us that television advertising is relatively ineffective at increasing sales.
The average ad elasticity measures the percent change in quantity in sales. In traditional papers they referenced an ad elasticity of .2 or a 20% lift in sales as the average or benchmark which isn’t all that bad. But what the researches found was that on average the ad elasticity they found was .01 or less than 1% lift in sales. For every $100 you spend, you will return $1 in sales. Quite a dramatic difference in ad revenue and returns!
The Pittsburg Blackout
An economists dream is a natural experiment. When an intern at a newspaper in Pittsburg accidentally stopped advertising for a month they had inadvertently created a natural experiment. Eleven months of ads, compared to one month with none. They reviewed the sales data over that month. This was a car dealership that had been advertising like this for a better part of a decade. They took a month off, naturally, you would expect to see a large dip in their sales numbers during this break. So what did the data say? No change at all.
Advertising Wasn’t Driving Sales
Advertising wasn’t driving sales. Now, the ironic part is the dealership, when confronted with the data didn’t believe it and kept on advertising monthly.
The ironic part was when the owners found out about this natural experiment that proved the ads weren’t driving behavior of consumers they didn’t want to believe it and they didn’t want more studies to be done. They went back to adverting in the paper again.
Whether advertising works or not is a null question, it really doesn’t matter. What does matter is whether or not your leader(s) are going to be willing to change or adapt when confronted with this new information.
The Podcasts are worth a listen. The first against advertising and the second for advertising, albeit for different reasons.
Does Advertising work? Short answer, not nearly as much as you’d think.
eBay’s Experiment That Saved $1 Million Dollars
The second episode in the two part series was all on the topic of digital advertising. One great story from this episode was when eBay stopped digital ads for brand name recognition and opted for simply coming up in organic search. The result? A saving of a million dollars and no trackable change in website visits or sales.
Developing a deeper understanding of how online advertising works is important for companies and individuals to make better decisions in the future. It’s not about advertising more and more, on the contrary, what’s the least amount you need to spend to increase sales by a significant amount? When you spend _____ what’s your return on sales? These are the questions marketing departments need to be asking.
Does digital advertising work? Short answer, yes but we don’t know why or how.
https://strategylab.ca/wp-content/uploads/2021/04/strategy-lab-tiktok-guide-tips.jpg 1400 2100 Jeph https://strategylab.ca/wp-content/uploads/2021/07/strat-icon-2021-white-300x300.png Jeph2021-05-14 10:15:572021-05-14 15:33:21Should You Start a TikTok For Your Brand?
https://strategylab.ca/wp-content/uploads/2021/05/How-not-to-get-Google-Reviews-copy.jpg 1156 2100 Jeph https://strategylab.ca/wp-content/uploads/2021/07/strat-icon-2021-white-300x300.png Jeph2021-05-09 12:35:112021-05-09 12:36:29How NOT To Get Google Reviews For Your Business
“We gave you a Google review, can you give us one?” -😳😩🤮
Recently a local company gave one of our clients a 5 star review on Google. I have access to their google business page so I see the reviews as they happen. A few days later I saw one of the owners and remarked how awesome a review from them was!
It wasn’t a review. It was bait. Like a bone to a dog, it was bait in a Google reviews lying scheme.
I thought this practice was done. In 2011 a Realtor sent me a LinkedIn recommendation that was half assed and immediately asked me for one in return. I felt so used, so dirty. Was that how the business community operates!? I thought to myself, because what a shitty thing it was to do to someone.
That’s not how the business community operates.
That’s how sleazy, lazy people try to artificially inflate their value online. The sad part is, they will always know which reviews are fake. They will know that reviews that were left in reciprocation for a review aren’t real. And by now you should know the adverse psychological affects to your brain when you’re “faking it”. How could you go to sleep at night knowing you do that?
Anyway, I laugh out loud when they tell me the story. Because how many people do they try this with, where the company refuses to leave a reciprocating review and they take theirs down? This creates a word-of-mouth moment to share with any and all who will listen. And humans love to tell the story of how people are trying to so something dishonestly.
Don’t try to get fake reviews from people. You’ll end up with less reviews AND other people outside your network will begin to trust you less.
Here are some of my favourite places and the Google reviews they’ve received. If you want amazing Google Reviews you must do something amazing!