The bigger coffee companies are the ones doing the smaller budget stuff!

by chee leng

When it comes to advertising on TV and newspaper, it used to be the platform for big companies. But, now it seems to be the opposite. Big coffee companies such as Starbucks are using a smaller platform while small coffee companies are splashing it on TV and newspaper. This happens because of two reasons:

1. Bigger coffee companies are always looking for new platform to engage their customers and current new platform happens to be mobile apps, social media when compared to ABTL is much smaller in budget.

2. Of course, because of competition, main stream media such as TV and newspaper are slashing their price, resulting in cheaper advertising that is affordable for the smaller companies.

Although, it might still depends on many variables, I would say doing the smaller things might be the right thing!

Here is an example, if like Starbucks, you build a facebook page, manages it and try to grow it. You probably spend a 4 figure sum if you engage an agency to do it. But, the fans are always with you and you get to interact with them continuously. There is a higher life time value of each fan versus say newspaper.

To be effective for newspaper, you probably need a full page ad, and that could be in high 4 figure or 5 figure sum. And that is for a day and it is perishable. Your audience only read it once. So, think about it, there is a reason why it is getting cheaper (the main stream media), it is not working as well now.

My $0.02

Smaller companies are flocking to TV/newspaper not only because it is affordable, it is something that they know. The media themselves kept saying how good they are and what mileage they are able to add to your business. Social media, mobile apps on the other hand while enjoying good reviews, are not getting as much exposure.

Moreover, people are puzzled why they must pay for facebook or twitter that are free. And would a platform that is know more for playing games and gossiping really help in their business? All these deter folks from using a lower cost and possibly free platform.

But with the success of companies such as Starbucks,Nescafe, coffee companies would soon realised that they are missing out on not using these platforms. I hope by then it is not too late to catch up...

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