Wednesday, January 23, 2013

Who Makes Money On Informercials

Someone posted a question on branding as to celebrity endorsements of products to increase sales, to which I replied do you have the millions up front to pay for the product, and what if it worked, but your product was flawed, and you had to recall ten million what-evers.  You don't get your endorsement fees back.  Plus, you left all of the money on the table that you would have had from earlier versions, and you also have to pay up front for the infrastructure to move such massive amounts of product.

Along these lines, I spent and hour interviewing Andrea Matzke, a producer of one of the most famous celebrity endorsed products of all time.  Here is the first ten minutes, and you can click through after each session to see it all.

Feel free to forward this by email to three of your friends.


2 comments:

Anonymous said...

What about product placement in tv shows, movies, music videos, etc.? Did Ogilvy do any research on that? Do they increase product sales?

John Wiley Spiers said...

I've had products placed in movies and such, and while it is a great thrill to see them in the background or used, it really did nothing for the sales. I am sure there are exceptions to this.

One ad expert told me that there are channels for results, such as radio is for recruiting and TV is for maintaining. I asked he what about the internet, and she said "both."

Ogilvy has written volumes, so I don't know if he has written on this (I'd be surprised if he did not.) How about you research it and report back?