The video discusses two marketing campaigns that generated significant revenue for companies but yielded relatively small returns for the advertising agencies that conceived them. The first example is Ogilvy's "Share a Coke" campaign in Australia, which is estimated to have made Coke approximately one billion dollars. However, the agency only received $350,000 AUD for their work. The speaker contrasts this with the agency's reward, suggesting that a billion-dollar idea should yield more than just enough to buy a small flat. The second example is American Express's "Member Since" feature on their cards, conceived by Ogilvy in 1967. This feature has been highly effective in customer retention, as members do not want to lose their original "Member Since" date, fearing it would make them appear less loyal if they rejoined. The speaker humorously notes that someone who has been a member since 1959 might look like a 'loser' if they had a 'Member Since 25' card. The video highlights the immense value of this feature by recounting an incident where American Express mistakenly sent out cards with the wrong "Member Since" date (25 instead of 1994) to over 50% of their cardholders. A significant portion of these customers called to complain and demand their original date be reinstated. The speaker emphasizes that the cost to American Express to correct this error is zero, while the value of retaining these customers is estimated to be around a billion pounds.

Financian

Oggov in Australia came up with the idea of putting names on Coke cans. It's probably made Coke about a billion dollars. Do you know what they made out of it? 350,000 Aussie dollars. That was the sum total the agency made.

Okay. So, you come up with a billion dollar idea, you get to buy a small flat in the part of Sydney. It's not really commensurate reward, is it?

Right. Someone at Oglev in 1967 had the idea of putting member since on the American Express card which in terms of card member retention has been well well more than the billion dollars cuz nobody wants to leave because they think well if I ever rejoin I'll be member since 25 which makes me look a bit of a loser. Well, if you're 59.

Okay. Right. Occasionally AMX sends out the wrong date by mistake. They send a load of people a member since 25 card when they've been a member since 94. More than 50% of people ring up and complain and demand that the original date is reinstated. What does that cost to do? Zero. Okay. How much is it worth to them? about a billion quid.

How Name On A Can Made Coke Billions And Paid Creators Peanuts

Oggov in Australia came up with the idea
of putting names on Coke cans. It's
probably made Coke about a billion
dollars. Do you know what they made out
of it? 350,000 Aussie dollars. That was
the sum total the agency made. Okay. So,
you come up with a billion dollar idea,
you get to buy a small flat in the part
of Sydney. It's not really commensurate
reward, is it? Right. Someone at Oglev
in 1967 had the idea of putting member
since on the American Express card which
in terms of card member retention has
been well well more than the billion
dollars cuz nobody wants to leave
because they think well if I ever rejoin
I'll be member since 25 which makes me
look a bit of a loser. Well, if you're
59. Okay. Right. Occasionally AMX sends
out the wrong date by mistake. They send
a load of people a member since 25 card
when they've been a member since 94.
More than 50% of people ring up and
complain and demand that the original
date is reinstated. What does that cost
to do? Zero. Okay. How much is it worth
to them? about a billion quid.

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How Name On A Can Made Coke Billions And Paid Creators Peanuts

Transcription