This newsletter comes from the hosts of The Marketing Architects, a research-first show answering your biggest marketing questions. Find us on Apple Podcasts or wherever you listen to podcasts!
This week, we're diving into the bold claim that advertising is becoming obsolete. Is it really true that big brands no longer need to advertise to grow?
—Elena
Amazon spent $20.3 billion dollars on advertising last year.
The most valuable companies today still spend big on advertising, proving its continued effectiveness for company growth. Beyond Amazon, Google spent $8.7 billion, Facebook $2 billion, and even Tesla spent $11 million on advertising in the past 12 months.
Why Advertising Still Matters.
The claim that advertising is dead is greatly exaggerated.
While Scott Galloway argues that all brands like Google, Amazon, and Tesla need to grow are great products, the evidence says otherwise. Each of these brands invest heavily in advertising.
Why? Because advertising works. It's not just about promoting a product. It's about creating mental shortcuts that simplify how consumers make decisions. Whether through repeated exposure, logos, jingles, or memorable campaigns, advertising builds brand familiarity and loyalty.
Turning off advertising doesn't just stop growth. It can cause a slow decay throughout the entire marketing funnel. Top-of-funnel metrics like web sessions and search traffic drop first, followed by a decline in leads and revenue.
So advertising? It’s absolutely still relevant.
"Ad Spending Growth To Accelerate In 2024”
This article published by Forbes covers the projected increase in ad spending for 2024, exploring why leading companies continue to invest heavily in advertising. Read the article.
The value of advertising.
“A man who stops advertising to save money is like a man who stops a clock to save time.”
— Henry Ford