Walking in Shengya's passageway, Halu asked me if the ad had entered the death stage.

After careful consideration, I felt the need to talk to her a little more.

Strictly speaking, it has only been 200 years since the provision of advertising services has formed a dedicated industry system, but how long has "advertising" existed?

Looking at China alone, there were advertisements in the Warring States period, and there was propaganda about gladiatorial battles in the ancient Roman period.

Advertising has been around for at least 2,500 years.

Could it be said that something that has existed for so long in the long history of human civilization will die out in the 20s of the 21st century?

How can it be!

There's no doubt that advertising is here to stay. But it's only natural that the industry that specializes in advertising services is coming to an end.

Take the most typical example - 4A, what is 4A?

Today, many people still regard 4A as an advertising sanctuary, and even Ogilvy and Mather in 4A will be considered by some people to be the highest temple in the advertising industry.

But in reality?

The truth and source of 4A is nothing but an agreement to protect the price system of the industry.

Do you think that an agreement that protects your own interests is awesome enough to help people who pay for advertising to make money?

Would a fool believe it?

Let me ask you again, what do advertising agencies do to make money?

Like most service industries, advertising agencies rely on profits from the difference in labor prices. To put it mildly, if you want to know your personal highest commercial value on the advertiser's side, then you can multiply your salary by three times and evaluate it, which is probably not much worse.

So the people who work in advertising companies will work so badly overtime - on the basis of not providing overtime pay, your boss is essentially the same as the bosses of Huaqiangbei and Foxconn, etc. - the more time you spend in the company, the higher the profit your boss can get. Therefore, the spiritual foundation of the existence of advertising agencies is the overtime culture.

However, we have to pay attention to the fact that the foundation of the existence of this system has collapsed today - the labor costs of advertising practitioners are getting higher and higher, and the advertising fees of advertisers are shrinking - in the wave of unimpressive profits, the shrewd businessman will siphon his investment from it, and the industry that has lost investment will naturally begin to shrink.

This is normal.

But where do the ads go?

Did you watch Li Jiaqi's live broadcast? Have you ever bought something because of Li Jiaqi's recommendation?

You're a fan of Wei Ya, right? You must have planted grass because of Wei Ya's recommendation, right?

Did you know that they already earn tens of millions a month?

Why? Why?

It is nothing more than the chemistry of the miraculous sales conversion ability and the live broadcast endorsement fee, which is more cost-effective than the traditional advertising cost.

Converted by labor costs, how can the monthly support of more than a dozen people and the inflated price of media procurement costs of creative companies not be more cost-effective than the small team of Internet celebrities who bring goods, right?

But what about the effect?

Which strategy company, creative company, research company, big data company, and media company can guarantee that it can help advertisers sell something?

But which broadcaster dares not to guarantee today's delivery volume?

Speak with the effect, speak with the cost, and make a judgment from the top.

Yes, I said that small influencers will destroy the price system, but you see, the brokerage companies where the big influencers work will definitely unite in the near future and protect the price system by some means.

While protecting, by the way, crush useless fake small Internet celebrities and swallow up real small Internet celebrities with potential.

Advertising will not die, but if advertising practitioners like us stick to the value of traditional commercial advertising, then we will follow this shipwreck and never recover.

Halu shuddered.