Re:TV Advertising Effectiveness and Profitability
by handmodel on Tuesday July 27, 2021 @03:21PM
(#27976414)
I think we largely agree. I know people who have launched food items (bug snacks) that were piloted in a dozen or so Whole Foods. They didn't sell enough in the trial period that they weren't given offer/lease to return.
It was a super niche product they were making but were up against a couple products that I've at least seen ads for online. I think, theoretically, if those other companies didn't have a brand presence then perhaps my friends snacks would have had a slightly better shot at staying on the shelfs. However, from the other products data they may have seen no short-term gain from their ads.
Many major retailers will require that new brands invest a certain amount of money in advertising product to their region/market before stocking the product. It's also common to 'lease' shelf space to manufacturers.