Published Nov 17, 2021

Co-op advertising

Seth Godin delves into the historical significance and modern impact of co-op advertising, examining its effects on business practices and merchant-consumer dynamics, while also exploring Amazon's strategic advertising shifts and strategies for innovative leadership in fostering resilience and authenticity within organizations.
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  • Amazon's Shift

    Amazon's advertising strategy has undergone significant changes, shifting from a consumer-focused approach to one that prioritizes advertisers. explains that Amazon now earns a substantial portion of its revenue from companies paying to be advertised on its platform, rather than from direct consumer purchases 1. This shift is evident in Amazon's catalog, which is designed more to sell advertising slots than to serve consumer interests. Godin notes, "They're not here to serve the reader. They're here to do just enough to make sure that the advertiser will buy it again next time."

    They're not here to serve the reader. They're here to do just enough to make sure that the advertiser will buy it again next time.

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    This evolution reflects a broader trend where merchants prioritize advertising revenue over consumer satisfaction 2.

       

    Cultural Impact

    Advertising has a profound impact on cultural buying patterns, often shaping consumer behavior and expectations. highlights how advertising influences what people buy, driven by a desire to fit into cultural norms and experiences 3. This shift is not limited to Amazon but is part of a larger trend where industrialists use advertising to secure a larger market share. Godin argues that this approach leads to a "coarsening and a cheapening of what we decide is good," as consumer choices are increasingly dictated by who pays the most for advertising space.

    It changes the trajectory of good taste because good taste ends up belonging not to what the community decides is something that the community is going to like just before the rest of the community realizes it.

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    This evolution in consumerism reflects a broader cultural shift where advertising dollars, rather than genuine consumer interest, dictate market trends 1.

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