RE: 16 Nov 2021 | Ella Sagar TV advertising shown to make search work harder for online brands19 Nov 2021 11:14
A long time ago now, I said a fried of mine who ran a Mattress delivery company (when i talked to him about Eve) was his scepticism they would ever make money, as the only way to get sales (in this particular market), was to, effectively through marketing, buy the business, and as soon as you stop the marketing, the sales drop alarmingly.
I got a bit of stick about it at the time but here we are a year or two on and CC is simply confirming the reality of how hard it still is to make this particular business model work.
The "problem" for EVE is that to be fair it recognised this very early on and when it launched as a PLC, it used all of that huge placing money to do exactly what CC advocates now, ie through company awareness generate loss making sales so as to be able to let people buy the brand when the advertising stops.
But as she admits its still a nut to be cracked.
I think she is doing a fantastic job with very limited resources at her disposal to achieve this goal but at best its slow. (Interviews for free publicity, winning awards to get reduced advertising rates, (relatively) low margin ancillaries, pushing a "sleep Wellness" theme etc.
But it still looks a long haul to me. (imo , DYOR)