Wednesday, April 29, 2009

Why Do They Advertise?

Last night while Nancy and I were watching TV there was a commercial for Ameren. It was about how when the weather is bad their workers still go out and work in the bad weather to keep the power on.

Nancy brought up the point since there is no other option for us to get our electricity, why do they advertise?

We'd be happier for them to take the money they wasted on the production of the spot and agency fees and media placement and apply it to making the customers bills cheaper.

So maybe someone out there knows the answer to this. Enlighten us.

4 comments:

Matthew Frederick said...

As a regulated monoply, I imagine that Ameren sees it in its interest to use paid television time for public relations purposes.

The idea is for Ameren to put itself forward as providing superior services so that Ameren can go to the regulatory board for rate hikes without too much of a public outcry. That's the idea, anyway.

Jeff said...

I will buy the PR angle, but TV seems the wrong way to do that. TV commercials seem phony. I fully expect them to have stories placed in the paper and on the news, and to do direct mail campaigns to make the consumer think they are great. TV just seems like a waste.

Matthew Frederick said...

Yeah, I agree that tv is inefficient for this sort of thing.

Also, I wonder if, as a publicly-traded company, Ameren wants tv commercials to attract stock purchasers, etc.

Enron certainly put itself out in the media in every aspect ...

DoeHands said...

I think it's also an obnoxious waste of money to see their year round white holiday lights lining their building.

 
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