Ditch Ads: The Most Overvalued Component in Your Marketing Strategy

Let me pose a simple question: If you had the opportunity to go back in time and ban Amazon Ads, would you do it?

Call me old-fashioned, but I firmly believe that ads, whether on Google, Meta, or even Amazon, have seriously distorted our perception of product value.

Let me pose a simple question: If you had the opportunity to go back in time and ban Amazon Ads, would you do it?

It's not an easy question to answer. Ads have leveled the playing field, allowing new brands to compete with established ones in their respective niches. But when I think about all those valuable products on Amazon that are forced to run ads out of desperation, it leaves me puzzled. Does anyone, besides Amazon, truly benefit from running ads? Would your brand perform better without them?

Chief Marketing Officer 1.0

Go grab a classic marketing book and read about the phenomenal success that old-school marketers achieved by relying on the 4P model: product, place, price, and promotion.

A successful marketing strategy meant having a product with a clear value proposition, communicating it through specific channels to the target customers, at a price that would be supported by promotional campaigns. To market your product effectively, all four Ps had to be in sync. Take it or leave it.

With four variables in the equation, understanding the implications of each was paramount.

1. Product was not just about the product itself but rather the outcomes it delivered to customers. What was the process that created such a powerful added value that people were willing to exchange their money for it?
2. Price was the communication function of your product. The more effectively you explained and conveyed the value and use cases to your customers, the more they were willing to pay for it. Decreasing the price in a world of rising inflation and sporadic competitor movements often left potential profit on the table.
3. Place referred to the sales channels or points where your target customers were most likely to interact with your product and make a purchase, whether it was through pop-up shops, retail outlets, branded stores, exhibitions, or online platforms.
4. Promotion was what made your priced product stand out in a specific place. It captured people's attention and enticed them to make a purchase.

Back then, private label products weren't mass-produced on a conveyor belt in China. Each product had to mature and to provide value that advertising legend David Ogilvy would appreciate in his amazing copywriting.

Marketing was a mix of market knowledge, hard work, and a bit of luck. Those days are long gone, thanks to Google, Facebook, and Amazon.

Chief Marketing Officer 2.0

I wish I could witness the good old days of marketing, but unfortunately, things have dramatically changed with the new incumbents.

Place

• Where do people look for information? Google.
• Where do people connect with friends? Facebook.
• Where do people find visual inspiration? Instagram.
• Where do people search for products? Amazon.

Place ?

Product

• Where do you find suppliers? China.
• Where do you find regulations? Europe.
• Where do you find customers? North America.

Product ?

Price

This one is the easiest by far. Most stuff comes from China, known for its affordability. If products don't sell, prices are lowered (ECON 101 | Price elasticity of demand). Margins remain acceptable.

Price ?

Promotion

Now, pay close attention. Assuming the other Ps are equal (which they are, unfortunately), who wins? That's right! The one who pays more for ads. End of story.

Here's my point: If you feel like Amazon/Google/FB/Pinterest/YouNameIt is the best thing that ever happened to your business, it means your product is not exceptional. No hard feelings, but that's the reality. If your brand has nothing else to offer customers besides their limited attention span, you're in deep trouble.

Time to react...

Chief Marketing Officer 3.0

Place – local. Nothing beats local. Nothing is more important than the community.

Product – sustainable value. No Shein, no Temu, no Aliexpress. I don't mean to say that I'm against Chinese brands (in fact, I love them). I simply despise the aftermath of their global expansion.

Price – willingness to pay. Have you noticed that the Adam Smith's Invisible Hand disappeared with the rise of cheap products? We no longer value durable products and slow fashion; instead, we invest in promoting cheap items, with most of the money going toward ads and Chinese manufacturers, rather than reinvesting in product quality.

Promotion – community. Word of mouth is the only promotional channel that should remain. Wondering why? Ask your neighbor about the best burgers in town. Would they mention McDonald's? Unlikely. It would most likely be a local burger joint that makes fresh, high-quality burgers that are most likely not the cheapest ones. And this summarizes all of the above.

If you're on the dark side, do nothing. You'll vanish soon anyway. EU regulators will take care of it.

If you're investing in everything but Google/FB/Amazon ads, you will rise.

Struggle with ads? Let me know what you think.