It pays to watch the ads?

John Hegarty, Chairman of BBH has written an article on why advertising works why it pays to watch the ads

Back in the 1940s and 50s there was a legendary investor, a humble secretary who made her fortune on Wall Street with a very simple investment strategy. She would buy Life magazine and if she spotted that any company continually bought double-page colour spreads (they had to be colour) she invested in them.

Hegarty then turns to the UK and examines three businesses that are really struggling to reconnect with their audience

If, today, we look at three brands, Sainsbury's, Boots & M&S, that are reported to be in trouble we can see a similar uncertainty in their communication strategy. Sainsbury's once told us "Good food costs less at Sainsbury's" and educated us in the delights of pink champagne, exotic fruits and rare French cheeses. Sainsbury's was the pre-eminent supermarket and its advertising reflected that fact. Not any more. Since then, it's been overtaken by Tesco continually telling us "Every Little Helps"

Hegarty's analysis of what is wrong with the advertising, is without doubt unquestionable. However, perhaps the malaise is somewhat more fundamental than an advertising problem.
Many business models are under threat, many companies are losing the right to sell to their customers exclusivley.
Customers are looking for and demanding greater quantities and manifestations of value. And because of the word 'search', we have changed from passive consumers who will be motivated by powerful iconic advertising to an ever more discerning audience.
If you look at the Apple iPod advertising it reinforces in many ways that greater sense of added value. But it is the product and everything that surrounds the iPod that makes it a marketing phenomenon of our time.
As John Grant wrote, image advertising is the junk mail of the 21st Century.
I would rather see great Levi's and Audi ads that I would poor ones, but I believe passionately that there are so many other more compelling ways to reach customers today.
And is anyone watching the ads? If no-ones watching, what's the point how good they are?

 Interestingly, BBH now have an Engagement Marketing Department.