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/Sammzor Dec 16 '12

God, the ways they try to make you feel like they care about your family. And "If you care about your family you will buy our product".

Just notice all the advertisements (especially billboards) that only show a person standing there smiling next to some text. Emotion sells!

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u/[deleted] Dec 17 '12

I live in an oil town, next to an oil city and Chevron loves putting billboards with a kid smiling, a logical statement that most people agree with and under it "we agree"

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u/PubliusPontifex Dec 17 '12

"Do you hate polluted beaches and dead dolphins washing up covered in oil tar? At BP, we agree."

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u/Illum503 Dec 17 '12

And we're sorry. Sorry. We're sorry. Sorry.

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u/HMS_Pathicus Dec 17 '12

And we're sorree. Sorree. We're sorree.

FTFY