Good Creativity But No Sales

Can creative advertising rescue the product or brand from inherent problems? Here are two examples reviewing the limitations of creative advertising:

In 1991, Subaru and American Express rolled out major creative ad campaigns. However, none have revived lagging sales. Subaru sales remain flat.

American Express has failed to reinvigorate its charge card with its new slogan: "The Card. The American Express Card." All the results are surprising because the campaigns come from agencies renowned for creativity. These two agencies are Wieden, which won kudos for its kinetic advertising for Nike, Inc., and Chiat/Day, which created the new American Express ad campaign.

Some criticics say, "Madison Avenue has lost its power to turn lemons into lemonade!" These campaigns have become the case studies to examine.

Advertisers have a tendency to think of good advertising as a panacea for low sales, and of bad advertising as a cause of low sales; they sharply criticize ads, when sales don't pick up, because they think of advertising as a panacea. In these cases, low sales are considered in relation to advertising, rather than as a marketing or company problem. People agree that these two campaigns are, however, almost stellar campaigns in terms of creativity itself. Then what is really to blame for the failures?

In Subaru's case, dealers say that the spots didn't give consumers enough reason to buy a Subaru instead of a Honda or a Toyota. Rick Desilva, President of Liberty Subaru in Oradell, NJ, says, "We like the fact that they were giving us a new image. The agency positioned Subaru as a car that appeals to solid values over glitz. But they weren't giving us a product story." Even though Wieden created a splendid commercial, they ignored the Subaru's features and the benefits for the consumers.

Unlike the Subaru campaign, American Express wanted advertising to stress its suitability, as well as to play up the traditional benefits, such as the card's advantage of a preset spending limit. Chiat's solution was to turn the card into an icon: "In its ads, the card doubles as the tail of a supersonic jet or a ball that a golfer hits out a trap." In the first quarter of 1991, the cardholders declined by 2.7 percent. People thought that the campaign had been trying to say too many things at one time.

The conclusion is quite simple: When ads fail to read consumers' minds, no matter how great the creativity is, they are bound to lose in the fierce competition.


No Award But Good Sales

Energizer
Jacko is a loudmouthed Australian who screams for Ralston Purina's Eveready Energizer batteries. He breaks through the clutter with bellowing, "Oy! We're gonna surprise you, new Energizer." Little wonder that consumers recall the ads and the character at the point of purchasing. Consumer awareness of Energizer is up 20 percent since Jacko was introduced, and sales are recovering after a two-year slide. Jacko may be obnoxious, but he sells batteries.

Victor Kiam
Another example of extremely effective, but not creative advertising, is that of Victor Kiam. The commercials featuring Kiam win no creative awards or popularity contests, but they sell a huge number of razors. Since Kiam's ads began televising nationally in 1979, sales have grown from $43 million a year to more than $100 million.


Award but No Sales

Gallo's Bartles & James wine coolers
The ads for Gallo's Bartles & James wine coolers hold the sixth position on the Video Storyboard list of creative commercials. As measured by Video Storyboard, a competing wine cooler, Seagram's Golden, was less memorable to viewers. Seagram was also outspent by Gallo on advertising its product: $33.4 million to $23 million in 1987. Nevertheless, Seagram began stealing market shares with a series of youth-oriented and "hip" spots featuring Bruce Willis. Seagram's Golden wine cooler took over the number one spot in the $1.6 million market.


Good Creativity and Good Sales

California Raisin
The California dancing raisins commercial is one of the most widely cited examples of popular award-winning advertising which also boosts sales. These commercials won numerous creative awards and were ranked number one in viewer popularity in 1987. In 1988, they had kicked up raisin sales by approximately 14 percent after six years of flat or declining volume. The ads evoked interest by making the characters stars.

Braathens
One of the most famous humor ads is Braathens. They launched a special cut-priced deal for senior citizens. The ad showed a portly businessman who comes home early to surprise his wife. After stripping off his clothes and clutching a rose between his teeth, he looks through the keyhole to see if his wife is inside. Finally, he makes his dramatic entrance in front of his wife's parents, as well as his wife. This commercial was so successful that airline tickets sold out the week before the commercial was due to end. Awareness of the offer reached 70 percent among the target audience. It is an example of applying creativity to business successfully.

Too Creative and No Sales

Benetton
Benetton's advertisements are undoubtedly the most controversial of our age; they seem to show us a multitude of creativity. Oliviero Toscani, who creates all these controversial advertisements for Benetton, says, "Advertising is not just about the selling of a product. It has an equal social obligation to do something more." However, it is of most common interest whether or not the advertising will improve sales through increasing awareness and recall. Recently, Benetton has been sued by some of its retail outlets that believe the provocative ads drive away customers. The retailers ask, "what does a roll of toilet paper have to do with selling clothes?" Many retailers blame Benetton: "We are talking about two different arenas here. If Benetton wanted to underwrite some cause, I'd be supportive. But we're trying to sell products. At this point everyone should know what Benetton is. But we still find a lot of people who know the name but don't know what we sell." Benetton ads appear to have created more negative responses than positive ones. Most critics conclude that the ads are ineffective and the company would be better off without that kind of creativity.