r/explainlikeimfive • u/bigdubsy • Dec 16 '12

ELI5: Why does Coca-cola still advertise? Explained

Why do companies that have seemingly maxed out on brand recognition still spend so much money on advertising? There is not a person watching TV who doesn't know about Pepsi/Coke. So it occurs to me that they cannot increase the awareness of their product or bring new customers to the product. Without creating new customers, isn't advertisement a waste of money?

I understand that they need to advertise new products, but oftentimes, it's not a new product featured in a TV commercial.

The big soda companies are the best example I can think of.

Edit: Answered. Thanks everyone!

Edit 2: Thanks again to everybody for the discussions! I learned alot more than I expected. If we weren't all strangers on the internet, I'd buy everyone a Pepsi.

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u/Bacon_is_not_france Dec 16 '12

Please, my buddy shoved the end of a gamecube controller up a dude's ass while he was sleeping at a LAN party. A caffeine pill is nothing.

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u/Aaod Dec 17 '12 edited Dec 17 '12

Jesus, and I thought the LAN parties I attended were strange when we would gross each other out with weird porn.

Children this is why you put everything you write on the internet into MS word first before posting.

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u/brevitywitssoul Dec 17 '12

"Jesus and I"

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u/miss_kitty_cat Dec 17 '12

Jesus finds the weirdest porn.