The writer recently picked up a book called How 30 Great Ads were Made – from Idea to Campaign, by Eliza Williams, Lawrence King Publishing, London, UK, 2012. The author picked 30 TV ads that not only won awards but pushed up sales of the the companies. It is an interesting read of how advertising companies try to plan everything done to the final detail, but still leave a margin for the target market to “buy into” the ad and become excited about the product, The book shows the skill sets needed to make ads and the risk taking involved from taking an idea and making something of it for at the end of the day the client wants the ad to help sell a product. If you are interested in the advertising business, a very good book to read.

Most of the ads shown in the book are for dividend producing companies, although the total sales of the companies would not be materially affected by the advertising campaigns. This statement means if the campaigns work, the companies increase their market share, if they do not work, the market share for other reasons would tend not to go down. For example, the Sony balls commercial and the explosion of colour on a building that since has been torn down, is a a wonderful ad. It effectively demonstrates Sony TV’s advantages, but Sony would sell large number of TVs without the ad. (hopefully it sells more with it). The key to dividend producing stocks in the consumer products area is they are well diversified or have many profitable products.

There are always more questions than answers, till the  next time – to raising questions