Foundations

Advertising vs. Marketing in the Post-TV World

~15 min read

Chapter 5 of 24

The Historical Context and Modern Divide

"So, if you saw Mad Men in the old days, that's an advertising agency. And in the 60s, they were the same, marketing and advertising. If you had a marketing budget, it was your ad budget."

This historical perspective illuminates how profoundly the marketing landscape has shifted. In the 1960s television era, the distinction between advertising and marketing was largely semantic—both involved paying media companies to interrupt audiences with persuasive messages.

The Television Era Marketing Model (1960s-2000s)

Structural Characteristics:

Limited Media Channels: Three major TV networks created captive audiences
High Barriers to Entry: Media production and distribution required significant capital
Interruption-Based: Consumers had limited ability to avoid advertising messages
Broad Targeting: Demographics were the most precise targeting available
One-Way Communication: Companies broadcast messages without feedback loops

Economic Model:

Predictable Reach: Advertisers could reliably purchase audience attention
Economies of Scale: Larger advertising budgets yielded proportionally better reach
Measurable ROI: Television ratings provided relatively accurate audience measurement
Professional Gatekeepers: Advertising agencies and media buyers controlled access

The Digital Era Transformation

"Marketing in the post TV world is totally different because it doesn't cost cash to a media company. It costs effort to make something people want to talk about."

This shift represents what economists call a "paradigm change"—a fundamental alteration in the underlying assumptions of how markets function.

New Market Characteristics:

Unlimited Media Channels: Anyone can create and distribute content
Low Barriers to Entry: Smartphones and internet access democratize media creation
Permission-Based: Consumers actively choose what content to consume
Precise Targeting: Behavioral and psychographic data enable micro-targeting
Two-Way Communication: Real-time feedback and interaction capabilities

Economic Model Evolution:

Attention Scarcity: Unlimited content creates fierce competition for audience time
Quality Over Quantity: Better content outperforms higher-budget content
Relationship-Based ROI: Long-term customer relationships matter more than single transactions
Distributed Creation: Success comes from community and network effects

The Banksy Case Study: Zero-Dollar Marketing Excellence

"So what's Banksy's advertising budget? Zero. But his marketing budget, meaning how much time does Banksy spend imagining the next thing he's going to create is huge."

Banksy represents the ultimate example of post-TV marketing philosophy. Despite spending zero dollars on advertising, Banksy has achieved global brand recognition through strategic creativity and effort investment.

Banksy's Marketing Approach Analysis:

Time Investment Areas:

Concept Development: Months of planning for each piece
Location Scouting: Strategic placement for maximum impact
Execution Planning: Detailed logistics for stealth installation
Timing Coordination: Release scheduling for optimal attention
Mystery Maintenance: Careful control of personal brand narrative

Results Achieved Through Effort, Not Spending:

Global Recognition: Banksy artworks generate international news coverage
Premium Pricing: Original works sell for millions at auction
Cultural Influence: Referenced in academic studies and popular culture
Sustained Interest: Decades-long career without traditional advertising
Community Building: Dedicated following that seeks out new works

Key Success Principles:

Authentic Voice: Consistent political and artistic messaging
Strategic Scarcity: Limited, unpredictable output increases demand
Controversy Management: Provocation balanced with artistic merit
Community Participation: Fans become part of the discovery experience

The Effort vs. Cash Framework

Godin's distinction between cash-based advertising and effort-based marketing reveals different resource allocation strategies:

Cash-Based Advertising Approach:

Resource: Financial capital
Strategy: Purchase attention from media companies
Measurement: Impressions, reach, frequency
Control: High control over message and placement
Scalability: Linear scaling (more money = more reach)
Sustainability: Requires continuous cash investment

Effort-Based Marketing Approach:

Resource: Time, creativity, relationship-building
Strategy: Create content worth voluntarily consuming
Measurement: Engagement quality, sharing, retention
Control: Lower message control but higher audience trust
Scalability: Exponential scaling potential through networks
Sustainability: Compounds over time, reduces dependency

The Laziness Trap in Digital Marketing

"So if you're being lazy and working on a funnel and counting your clicks and trying to get the word out there, you're getting exactly what you deserved."

This critique addresses what might be called the "digital marketing industrialization"—the attempt to apply mass production principles to relationship-based marketing.

Symptoms of Lazy Digital Marketing:

Funnel Obsession: Focus on conversion mechanics rather than value creation
Click Counting: Measuring activity rather than outcomes
Automation Over-reliance: Replacing human connection with technology
Template Thinking: Copy/paste strategies without customization
Short-term Focus: Optimizing for immediate returns over long-term relationships

Research Supporting Godin's Position:
A 2023 study by Salesforce found that 73% of consumers expect companies to understand their individual needs and expectations. However, 61% of consumers report feeling that companies treat them as numbers rather than individuals.

The Show Quality Imperative

"But if you're spending your time putting on an honest show that people want to see and they want to engage with and they want to be part of, that's hard work. That's a useful way to spend your time."

The "show" metaphor reframes business communication as entertainment and education rather than interruption and persuasion.

Components of an "Honest Show":

1. Audience Value Focus

Entertainment Value: Makes the audience's time worthwhile
Educational Value: Teaches something useful or meaningful
Emotional Value: Creates positive feelings and connections
Social Value: Gives audience social currency to share with others

2. Authentic Engagement

Two-Way Interaction: Genuine responses to audience feedback
Community Building: Facilitating connections between audience members
Transparency: Honest about motivations, processes, and mistakes
Consistency: Reliable quality and messaging over time

3. Participation Design

Co-Creation Opportunities: Ways for audience to contribute
Behind-the-Scenes Access: Insider information and processes
Exclusive Benefits: Rewards for engaged community members
Shared Mission: Common goals and values alignment

Case Study Comparison: Old vs. New Marketing Models

Traditional Advertising Model: Pepsi's TV Commercials

Investment: Millions in production and media buys
Reach: Broad demographic targeting
Message Control: Complete control over content and placement
Results: Temporary brand awareness spikes
Sustainability: Requires continuous spending to maintain impact

Modern Marketing Model: Red Bull's Content Strategy

Investment: Extreme sports event production and content creation
Reach: Targeted community of adventure and extreme sports enthusiasts
Message Control: Less control but higher authenticity
Results: 45% annual revenue growth, premium pricing power
Sustainability: Content and events create compounding brand value

Key Differences in Approach:

Red Bull creates experiences people want to participate in rather than messages to avoid
Investment goes toward value creation rather than interruption purchasing
Success metrics focus on community engagement rather than impression delivery
Brand building happens through association with valued experiences rather than repeated exposure

This paradigm shift requires businesses to develop new capabilities in content creation, community management, and authentic relationship building rather than traditional media buying and message optimization.