Has Scale Lost its’ Power?

This AdAge article asks whether scale has lost its’ power for advertisers.

The thrust of the article basically makes the case that due to social media and other ways of communicating (PR, digital) with constituents, smaller brands, can now level the field with larger spending brands.

This makes a lot of sense to me thematically. I would also support this with some of the case studies out there– Comcast and Dell, especially that were getting burned by customers for their poor service and were able to turn around brand perceptions by using the same tools to move the needle in the positive direction. Granted, this is a bit different than a small brand taking down a larger spending brand.

Henkel has been able to compte by using aforementioned tools. They are the owner of the Dial brand among others.

“Mr. Casper (Henkel CMO) has lived both sides of the scale question. Henkel is a major player globally, but its U.S. business is smaller than the global P&G brand he helped launch earlier in his career as an executive there: Pantene.

He said he once doubted challenger brands could compete effectively but has changed his mind, in part because of personal experience. He has seen launches of Purex Natural Elements and Dial Yogurt body wash gain significant share despite significantly underspending competitors, he said, using launches heavy with PR, digital and social-media components.”

All the more reason for brands to move beyond simply monitoring hashtags on Twitter, but acutally becoming part of the conversation.


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