Is Branding Losing its Relevance?
I did find some of the statements generic and not very helpful. This may because news coverage did not give the full scope of what was discussed.
The top 100 packaged-goods brands collectively saw sales and market share slip significantly in the past year, according to a report from Catalina, adding to recent reports of woe for the industry’s biggest players.
While prior reports have showed the biggest manufacturers in CPG have been shedding share to smaller ones for years, it was natural to assume top brands, which get the lion’s share of management focus and marketing dollars, were faring better than the overall companies. Not so, according to the Catalina report, drawn from a representative sample of scanner data from 26,000 food, drug and mass-merchandise stores in company’s in-store promotion network.
Catalina found sales for the top 100 brands collectively declined 0.8% to $56.8 billion, even as overall sales tracked by Catalina increased 6% for the year ended June 30.
As Scott points out:
The digital age, with its transparency and innovation, has declared war on the heart. Search engines and user reviews are adding a level of transparency that’s starching much of the emotion from purchase decisions. Google and Amazon have signaled the end of the brand era, as consumers are less apt to defer to emotion when god (Google) or his cousin (Amazon) tell you to not be stupid and buy Amazon-branded batteries (a third of all batteries sold on the internet) vs. Duracell.
Does this mean the death of branding? No, but it does mean that the internet has made a far greater number of products vulnerable to substitute goods.
Facebook will give publishers 100% of revenue
I found the reports on this amusing because of what was generally not stated. The numerous indulgences that Facebook is bestowing upon publishers,
the opportunity to pay in order to retrieve the required content, with any transactions carried out directly on the publisher’s own website – from which they will retain 100% of all revenue. This control will extend to pricing and subscriber data.
will no doubt come at a price. Facebook users themselves will be part of this, with the data they reveal when interacting with the articles but publishers would be very naive to think that it stops there. Once Facebook becomes the audience delivery mechanism, the balance of power (such as it is) will be wholly tilted towards them.