For anyone over 25, if a product got advertised on TV meant it had been backed by a serious amount of cash. “As seen on TV” meant it was big and that “bigness” came to mean that it was a quality product.
With handheld media though, people won’t sit through reams of adverts, not when the world is just a click away. Marketers and governments may never regain that level of brand creation power – the world has changed.
Most of the city boys thought Buffett was paying well over the odds for Heinz when he bought it for $28 billion last year.
Fortune wrote, “the idea of Buffett as an extreme value hunter has become more image than reality”.
They don’t get it, but old Buffett understands that the TV is dying and as it dies, the marketer’s ability to create mass trusted brands dies with it.
How can you create a new Pampers or an Ariel or a Heinz on a handheld device?
Buffett will probably buy more trusted brands and you can expect some analysis heavy but reality short fund manager to cry at the price on the basis of some ratio.
Speaking of ratios, there is probably a new method of spotting undervalued stock here.
If you factor in percentages of “brand price premium” and “market awareness” against the P/E ratio you must get a different set of value companies?
Anyway, the death of TV means the playing field is level for the first time in your life time and there is an opportunity for you, the finance professional to make a mark with this new media.
HERE is a complimentary video which is the first part of the “rapid client acquisition program”, this one is yours for nothing.
Land is most valuable because they don’t make it anymore, the same is becoming true for mass market brands.