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/DeathByPianos Dec 16 '12
Slightly bitter! One time I fell asleep at an all-night LAN party and my "friends" put a caffeine tablet in my open mouth. The pill slowly dissolved and pooled in my dormant mouth I awoke and was greeted by the worst flavor hell I can imagine. Thank god caffeine is soluble in water. It was still so hard to flush out the sides of my tongue. I cringe at the memory even today.