A Creative Communications Agency

Over the last few months there have been a few national giveaways to “every American” but does it have an impact? First was the Steal a Base Steal a Taco promotion from Taco Bell during the World Series. The second was Voters get Free Coffee from Starbucks. And finally the promotion that could still fall through; Dr. Pepper promised to give every American a free Dr. Pepper if Guns ‘N Roses releases the album “Chinese Democracy.”  Backed by millions of dollars in media buys, sponsorship costs, TV, web, print and radio spot development do the promotions pan out and really increase revenue for the brands?

That is always the question with advertising - how much revenue will it generate? How much revenue does any TV spot generate? Did the ad in Sports Illustrated drive more customers to your store? It’s difficult to tell but one factor is that these companies have done something that generated a “buzz.” People love that term, create some buzz and get people talking about the product and sales will jump! Right?

The actual dollar equation of cost of promotion to the revenue it generates isn’t a direct line that can be easily tracked. First there are millions of dollars spent to get the promotion out there. Lot’s of money has to go in up-front. Then you can’t be sure how much of you will be giving away. Production needs to go up at the bottling plant, more beef needs to be ordered, more beans need to be ground,  more workers needed to handout the tacos, coffee, or Dr. Pepper.  Considering all of the costs directly and indirectly involved it can get out of hand quickly.

But what is the result, where do you set the goals for success? With Starbucks and Taco Bell, they are giving away something that is fairly small; one taco, one cup of coffee. It’s likely that someone who comes in for the freebie will order something else and thus help offset the cost of the promotion. It’s similar to why grocery stores put milk in the back, you have to walk all the way back there and you will probably think of other things you will need along the way. The message also has a deeper impact in the mind of the consumer. FREE - something is free, let’s go get it! It will draw attention and to think of all the messages that QSR’s send out each hour. Having a message so different will be remembered.

Though in the end, I did know about the Starbucks and Taco Bell promotion but did not partake. Why? I forgot. I knew the promotions were going on and when but when the time came I had other things on my mind and it slipped away.

So all this talk about tacos, coffee, and soda pop has made me hungry; where should we go today? Get a taco and go to Starbucks? Probably not, but the message does have a stronge sense of recall and a long shelf life.