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/ScampAndFries Dec 17 '12

And cardiac arrhythmia.

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u/MF_Doomed Dec 17 '12

that sweet cardiac arrhythmia.

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u/Ahuva Dec 17 '12

I like cardiac arrhythmia with a hint of shortness of breath.

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u/[deleted] Dec 17 '12

The flavour I get comes with some light-headedness too. Dat sway