I've recounted the various books I have been reading lately on economics and corporations. What I have learned and relearned has changed my outlook when it comes to ads on TV. In the past, owing to my college degree and interest in varying aspects of journalism, I have looked at commercials in the light of their creativity and effectiveness. I don't look at them in this way that much anymore. Now, I'm always trying to figure what their angle is.
For example, this afternoon I saw an ad for All-State Insurance in which the viewer is told that safe drivers receive checks from the company twice per year for every year the policyholder is accident-free. Golly gee, that sounds swell, don't it?
But a corporation doesn't do anything out of a sense of fairness or as an act of altruistic charity. Corporations also do not commit to actions that will have a negative impact on their godlike bottom line. So, what could be up with this advertised "giveaway?"
The first thing that popped into my mind is that the checks are nothing more than a gimmick to pull in new customers. Insurance is a cutthroat business and the various corporations in the industry always try to out-gimmick each other (it's just as true for many other industries as well). This or that corporation will employ such gimmicks for a while and then, when they no longer see the need for them, the gimmick a customer signed up to receive unilaterally will disappear. The hope is that the customer is hooked and won't jump ship.
The second thing I thought of is that, in order for All-State to send out this money to millions of policyholders, it must represent chump change to them. My guess is that their auto policies are slightly higher than many of their competitors -- I haven't researched this premise -- and so the safe driver checks merely represent a small rebate on a policy that would have been less expensive if purchased from a different insurance carrier.
In this way, the customers feel as if each is receiving something for free when, in fact, they are the ones footing the bill. By and large, Americans are incredibly gullible.
This is what I do now when I watch television AND, of course, pay attention to ads. In a way, it almost makes watching commercials fun!
For example, this afternoon I saw an ad for All-State Insurance in which the viewer is told that safe drivers receive checks from the company twice per year for every year the policyholder is accident-free. Golly gee, that sounds swell, don't it?
But a corporation doesn't do anything out of a sense of fairness or as an act of altruistic charity. Corporations also do not commit to actions that will have a negative impact on their godlike bottom line. So, what could be up with this advertised "giveaway?"
The first thing that popped into my mind is that the checks are nothing more than a gimmick to pull in new customers. Insurance is a cutthroat business and the various corporations in the industry always try to out-gimmick each other (it's just as true for many other industries as well). This or that corporation will employ such gimmicks for a while and then, when they no longer see the need for them, the gimmick a customer signed up to receive unilaterally will disappear. The hope is that the customer is hooked and won't jump ship.
The second thing I thought of is that, in order for All-State to send out this money to millions of policyholders, it must represent chump change to them. My guess is that their auto policies are slightly higher than many of their competitors -- I haven't researched this premise -- and so the safe driver checks merely represent a small rebate on a policy that would have been less expensive if purchased from a different insurance carrier.
In this way, the customers feel as if each is receiving something for free when, in fact, they are the ones footing the bill. By and large, Americans are incredibly gullible.
This is what I do now when I watch television AND, of course, pay attention to ads. In a way, it almost makes watching commercials fun!
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