(Paid Advertising)

The Perfect Ad Campaign That Failed

Ryan Chute
Ryan Chute
October 10, 2022
The Perfect Ad Campaign That Failed

What do you think are the worst advertisements of all time? Hmm... Perhaps a few advertisements come to mind. When we think about failed ads, our minds automatically jump to those botched, big-budget commercials, never to be seen again. Some bad advertising examples off the top are Kendall Jenner's Pepsi commercial and Sony's racist PSP ad. These are advertising mistakes and bad marketing campaigns from the get-go. However, the truth is even the most well-thought-out and perfectly executed ad campaign can flop.

When a good ad campaign fails, it can take a serious toll on a company's bottom line. Every once in a while, you will encounter a business that crafts the perfect ad campaign but still ultimately fails. Failed ads are not necessarily the result of bad taste or poor writing. There are many factors at play resulting in failed advertising campaigns. You'll learn these factors here to help you avoid the same pitfall. We'll also revisit one of the perfect ad campaigns that failed, and you'll be surprised why. Keep reading.

The Marketing Myth

It's a common belief that advertising can make or break a business. After all, effective marketing helps create brand awareness and drive customers to purchase your solutions. While that's true, it tells only a smidge of the entire reality. Advertising, however, is not enough to bring a steady stream of traffic and sales to businesses. Roy H. Williams says the belief that advertising is enough to drive steady traffic is one of marketing's greatest myths. Some of the biggest failed ads are those that banked their advertising principles on this premise. Sadly, even if you hire the best ad writer or produce the most creative ad, sales are not assured. Relying simply on ads is one of a business's biggest advertising mistakes. Indeed, most ads that failed are a product of bad writing. However, other failed ads still hit the right notes regarding creatives, yet still fail altogether. Your ads, solutions, business culture, and market’s felt needs should perfectly align before you see the numbers. Otherwise, your efforts will only fall under history's advertising upsets, hurting your business. That is where Wizard of Ads™ comes in. We help residential home service businesses plan and develop killer advertising campaigns that won't turn into failed ads. If that's what your business needs, book a demo with Ryan Chute from Wizard of Ads®.

Why do Good Ad Campaigns Turn into Failed Ads_

Why do Good Ad Campaigns Turn into Failed Ads?

We've all seen bad advertisements before– you know what I’m talking about. I mean those commercials that make us groan, scratch our heads or even change the channel from the cringe. Then we eventually learn that the brands behind those commercials fail to receive flak and online backlash. That’s a pretty understandable and valid public sentiment. However, have you ever wondered why some excellent ad campaigns fail? It's a question that has puzzled business owners for years. After all, if a campaign is creative, has strong messaging, and has a big budget, shouldn't it be a guaranteed success?The answer is no, and the reasons for these failed ads are also quite simple. Still, countless entrepreneurs overlook them. Let's explore the four reasons why good ad campaigns turn into failed ads, according to Roy H. Williams:

1. Too Little Repetition

Did you know that the average folk encounters 5,000 ads daily?

It’s no wonder we have become desensitized to adverts, often finding them annoying, intrusive, and invasive. For business owners, this is a problem. The more advertisements your audience sees daily, the less information they retain from each ad. That's why modern research suggests seeing an ad seven times before it registers with a user.

Some good ad campaigns turn into advertising upsets when there's too little repetition. This means your targeted audiences do not see or hear your ads frequently enough for them to sink in. In the sales process, customers need to be aware of your offer and familiarize themselves with it. This will require you to run your advertising repeatedly.

When you don't, any good campaign becomes failed ads, and there are only two reasons this could happen:

  1. Your advertising campaign was shorter than your buying cycle.
  2. Your advertising campaign did not reach the same audience frequently enough.

Ad frequency is vital for long-term retention, but relationships also take time. When you take the length of your buying cycle, your advertising campaign must be longer. Otherwise, you’ve convinced your buyer to buy your thing, but then stopped telling them to buy it from you. Congratulations to your competitors!

There's a caveat, though. An ad that offers an irresistible, offensively huge value with a limited-time offer skips this requirement. Why? Because the brain needs not retain a brand when the deal is over.

Deeply Entrenched Competitors

2. Deeply Entrenched Competitors

How often have you seen a good advertisement that didn't convince you to switch?

Even good advertising campaigns pale compared to deeply entrenched competitors who meet their audience's felt needs. Remember that advertisements are a promise of what's to come. However, when customers find their haven, why risk what they already have for another promise?

Normally, in cases such as this, the reason for your failed ads is beyond your control. Except if you are in the residential home service industry. Most home services operate locally, unlike digital businesses that only occupy online real estate. This means that you have complete control over whether you'll compete in a locality with a tight competition or not.

Publish ads in a heavily guarded fortress, and expect everyone to walk over it. Choose a spot where no competitors tread, and see your business soar to the high heavens.

3. Failing to Deliver

Both factors we previously mentioned look at failed ads from a pre-emptive perspective. In other words, they have already failed advertising campaigns before the sale. This third factor classifies unsuccessful advertisements reactively or after the sales happen.

Allow me to explain.

As I have mentioned earlier, advertisements are a promise of what is to come or what customers should expect. The stronger your messaging gets, and the bigger the stakes you make, the higher the expectation you set for customers.

Sometimes, the product or service you are offering cannot meet these high expectations. Businesses may massively overhype their value proposition to generate a buzz.

When people have been lied to, and the product is not as good as advertised, it leads to failed ads. Worse, you are losing out on potential repeat customers for your business.

How many disappointed customers does it take before everyone learns that you under-deliver on your promises?

Lack of Interest

4. Lack of Interest

Not every business model is commercially viable. Some businesses are easier to sell than others, and the likelihood of failed ads is little to none. Other types of business are just a hard sell for any market. Sometimes, even when they produce some of the most beautiful advertising, they still fail.

Mostly, that’s because they provide solutions to problems their target market does not face. In this case, the failure was not because of the ads but the business model. While residential home services usually do not fall in this category, there are instances when failed ads could occur. An example is when the offered value propositions don't fit a market's taste.

For example, let us look at a sewer repair contractor. Imagine the competitive landscape comprised of sewer companies that offer trenchless sewer line replacements. Any advertisement that offers traditional trenched approaches that excavate landscapes will be ultimately ignored.

Another instance is when you run ads that are out of season. For example, an HVAC contractor runs ads on heating repair or furnace installation during the summer. The campaign does not make any sense and will only result in failed ads.

AAirpass - American Airlines

It's a different story when household brands commit failed advertising campaigns. There are many cases of ads gone wrong in the trade history. However, one of the most interesting cases yet is AAirpass by American Airlines in the 1980s. Despite their reputation, failed ads still receive recognition, albeit in a negative light. AAirpass is one of the most notable failed ads in history. Here's the thing, it failed not because the advertising flopped. Instead, this advertising strategy succeeded so much that it cost the company millions of dollars. Because of a rough patch in the '80s, AA looked for quick ways to raise its capital. However, unlike other businesses that secure bank loans to keep their runway, AA decided to sell AAirpasses. This was a lifetime of first-class air travel in exchange for a flat rate of $250,000. The problem is that this strategy backfired as AA started losing millions yearly from the high volume AAirpass flights. Now, let's compare the campaign side by side with the four factors we've listed above:

  • The AAirpass ad had more than enough repetition. Word got out quickly thanks to a household brand like American Airlines and their lucrative offer.
  • The offer was so valuable that it won over the competitor's customers. After all, why pay a fee for every flight when you could limitlessly fly first-class for a large upfront sum?
  • American Airlines delivered on its promises. The first few AAirpass holders were manageable to bear, but a surge of free first-class flights? That's too much to handle for any airline company.
  • The interest was there. Obviously, everyone who could afford AAirpass was quick to get a hold of one. Who in the right mind would pass up such a lucrative opportunity of unlimited first-class flights?

American Airlines hit all the checkboxes that should make their ad successful. It was an exemption to the rule among all advertisements that flopped. The AAirpass sales gave them the quick money, attention, and sales they wanted, but it backfired miserably. Why?Because creative advertising and irresistible offers on their own are not enough to avoid failed ads. Producing advertisements comes with a lot of planning and strategizing on the backend. Otherwise, your ads could fall into the same pitfall as American Airlines. Therefore, trust advertising specialists who will help you produce good ad campaigns and strategize effectively. Ryan Chute from Wizard of Ads® happens to be a master advertising strategist. If you don't want failed ads, book a call.

(Strong Ads)
Ryan Chute
Ryan Chute

Helping small businesses become BIG brands with a holistic marketing strategy that speaks the same language across all sales and marketing channels.

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Who does the Wizard of Ads® for Services work with?

Wizard of Ads® for Services work with healthy and growing businesses hungry to grow by multiples, like you.

You are ready, willing, and able to grow your business. You are open to change and are seeking a distinctive angle of approach to gain the time and attention of a too-busy public.

You know that lasting relationships take time, patience, and good energy to nurture and cultivate. We carefully enter into every arrangement with the intention of working with you for as long as you own your business. You prefer lasting partnerships.

You are already a solid operator. You have successfully grown your business and appreciate the impact the right brand story will have to get to the next level in your operation. You know a strong relational message takes time to gain momentum, but it’s worth the one-time short-term discomfort for the long-term gains.

Marketing cannot fix a failing business.

We accelerate what’s already happening in a business. If your business is on the rocks, marketing will only speed up the inevitable.  

You’re focused on lasting change that leads to exponential, profitable growth, not just sales at any cost. Intuitively, you know that communication that enhances every element of your customer's experience and your employee's culture is the key to your success.

Our advertising model works best for services who have a long purchase cycle and sell a more expensive product like jewelry, furniture, luxury products, and automotive.

How does the Wizard of Ads® for Services charge?

Traditional full service marketing agencies are designed to capture the greatest amount of revenue from a client, regardless of results. Every last item is billed and expensed to the client. Typical agency fees can represent a whopping 55% of the entire advertising budget. That means a $5 million dollar advertising budget, you would spend $2.75 million on agency fees.

Think of Wizard of Ads® for Services as the Anti-Agency.

Our income is not tied to your advertising budget. Our income is exclusively tied to your growth. Our goal is to maximize your advertising impact with the lowest reasonable spend. This allows you to spend only what is necessary or to put extra horsepower into aggressively growing in your market.

The genius of this model is that it perfectly aligns our motivations as true partners for exponential profitable growth without the pain of being unaffordable. Ultimately, we are confident in taking the risk of being underpaid in the first few years because we know the results always speak for themselves.

Next, we do not accept commissions, referral fees, kickbacks, or other compensation from any service providers we recommend or engage for production work. Most agencies do. This includes the 15% agency commission for media buying. This approach is considerably different from the compensation plan employed by most advertising agencies, as it eliminates any potential conflicts of interest and allows us to focus our entire attention on helping you grow your business profitably as a true partner. For example, a $500,000 annual media buy would involve a $75,000 commission that we would have removed directly from your media providers' invoices.

This is the perfect pricing model for services who sell goods with a long purchase cycle.

By tying ourselves to gross revenue, we only have one motivation. Your motivation. We have no motivation to convince you to spend more money on marketing than what is necessary, and since we are a variable expense to sales, we NEVER become too expensive to have us on your team.

In almost every case, we end up lowering the amount of money you spend. We will stay within your planned marketing budget, including your media spend, production, and our Annual Fee. Add on the fact that you get any and all commissions back for media buys and various services provided by outside providers, and you will actually save money having us on your team.

Don’t forget, we have the largest buying power in North America for media buying, meaning for every dollar you spend buying media, we only spend 27 cents on average. This stretches your reach, impact, and frequency in a way no other agency (or yourself) can achieve on your own, saving you hundreds of thousands of dollars, eventually millions, every single year.

Clients who heed our advice and embrace our Marketing Strategy quickly add $1 million in incremental revenue to their business, making your investment a smart bet and a bit of a no-brainer.  

There is no longer any guesswork, hope, or fear that our marketing strategies are going to work. If our client’s are able to abandon any limiting beliefs about marketing, deliver operational excellence, and play the long game, our marketing strategy will accelerate their profitable growth.

Wizard of Ads® for Services pricing model is based solely on the top line revenue of your company. It consists of an Upfront Fee and an Annual Fee. These fees are inclusive of scheduled travel, services, and all other expenditures as outlined in the Consulting Agreement.

The Upfront Fee covers the intensive Uncovery Process, the first year’s Media Buy, the Creative Process, and the Market Research while the Annual Fee goes toward implementation, ongoing creative and consulting, and next year's media buy. You get a team of 3.5 people, with direct access to a top tier Creative Lead and Media Buyer, and on-demand access to me as your Master Strategist. You will also have a full-time Account Manager keeping everything on track.

While the upfront does have an initial pinch, it is easy to amortize the investment over the many years we will be working together to grow your business. Wizard of Ads® retain clients for 10 years, on average. The sale of the business is the number one reason for termination. We actively terminate the bottom 1% of clients who are unwilling or unable to follow our strategies.

Wizard of Ads® for Services believes that all rewards should be directly correlated to the success of our clients. This means that the Wizard of Ads® for Services only receives a raise when the company achieves growth. For example, if your gross sales for the year have increased by 25%, the Annual Fee you pay us in the following year will also be increased by 25%. Likewise, if your gross sales decrease, our Annual Fee will decrease by the same percentage during the following year.

This is an exceptionally easy and fair way to track and reward success. This model was developed by Wizard of Ads® over 35 years ago and has served us well because it serves our clients well.

As a rule of thumb, we take the risk of working for considerably less than our actual value in the first few years as we help accelerate growth. This means you need to be willing to pay us exceptionally well when you start doing even better.

When should I engage The Wizard of Ads® for Services?

There are four key revenue stages for engagement with the Wizard of Ads® for Services.

  1. Under $3.6 million in revenue
  2. Between $3.6 and $10 million in revenue
  3. Between $10 and $20 million in revenue
  4. Over $20 million in revenue

Under $3.6 million in revenue is an investment in your brand. This will serve you well in establishing your brand story early on and help you with your name, logo, and truck wrap design. It's easier to create pictures from a story than it is to make a story based on pre-drawn pictures. You'll be glad you did. Everyone on a fast path to growth is.

Most clients start with Wizard of Ads® for Services between $3.6 and $10 million in revenue. They have often seen a natural ceiling with their leads for demand service and are looking for ways to push past the ceiling. This can only be done with a properly executed brand strategy, specifically in mass media with a sticky story.

Between $10 and $20 million in revenue, Wizard of Ads® for Services has some natural economies of scale. This is a sweet spot where Wizard of Ads® for Services can offer some added value in getting the ball rolling.

Over $20 million in revenue is actually the lowest cost point of entry as a percentage of revenue, but not the cheapest time to start with the Wizard of Ads® for Services. Leveraging all economies of scale aside, we have been left out of the upside along the way, so engaging when over $20 million in revenue means we have to mend a lot of fences damaged along the way. This is also where clients see significant savings in their media buys and production costs.

There are also three market sizes to consider.

  • Primary Markets are the top 50 cities in America.
  • Secondary Markets are the smaller cities in America.
  • Tertiary Markets are the more rural trade areas in America.

When considering an engagement with The Wizard of Ads® for Services, consider what size market you are in. For example, a $3.6 million company in a Primary Market will struggle to get the necessary reach needed to make a splash. You either have to be more patient than a larger company or spend more money to accelerate your reach.

Alternatively, a $5 million company in a Secondary Market will look like a pretty darn big fish in a medium-sized pond.

A $20 Million company in a Primary Market will feel like a $50 million company using our strategies to potential customers.

The key to remember is that the earlier you start with the Wizard of Ads® for Services, the lower the investment to get started. As they say, the best time to plant a tree was 20 years ago. The second best time is today.

Are production costs included in your fees?

Offline, the Wizard of Ads® for Services Creative Lead will create the ad copy, cast the voice actors, source the production house, direct the performance, pick the music bed, manage all the edits, and provide you with the completed ad for final approval before sending to air on your behalf. This is included in our fees.

You pay for the production house, actors, royalty-free music, and jingles directly to avoid any potential for markups, commissions, or management fees.

We have many friends in the industry that give our clients good deals due to the large volume of work we provide them. We will introduce you to them.

Online, the Wizard of Ads® for Services Digital Lead will either coordinate production in-house or work with your preferred digital vendors. The scope of work will be determined and fees will reflect the scope of work to be done.

How long before a brand-forward strategy starts working?

In approximately three months of activation, we’ll just be getting live on air. In six months (3 months on air), you’ll be getting anecdotal feedback from people that you are being heard, but there will be no direct line to revenue.

After 6 months on the air, you’ll think you made the biggest mistake of your life signing up for this branding nonsense. After 9 months on the air (12 months in) you’ll see the light at the end of the tunnel.

At 12 full months on the air, you’ll know why you did this branding thing. Two years from now, we'll be clinking champagne flutes as you wonder why you didn’t do this sooner.

How long before we’re live?

The general guideline is 70-120 days, depending on the level of production needed and if there is a name change to your business.

This includes an onsite visit, a deep dive into research, and getting things created, negotiated, approved, produced, and live on the air.

  • Uncovery - 15-30 days based on travel. 1-2 days onsite.
  • Research - 30-60 days based on the scope of work.
  • Creative and Media Buy Process - 45 to 60 days
  • Offline Production - 15 days for radio. 30 - 60 days for television.
  • Online Production (if switching) - 60 days

This means planning for roughly 90 to 120 days in the proper development and production of a completely unique Marketing Strategy before anything hits the airwaves.

Are you exclusive?

Creatively, yes. During the term of this Agreement, all Creative Partners assigned to your Account shall not engage, directly or indirectly, as an employee, officer, manager, partner, consultant, agent, owner, or in any other capacity, in any competition of the client, including any company engaged in marketing consulting.

For clarity, the Creative Partner is defined as the individual Wizard of Ads® Partners who is responsible for creating your creative strategy and ongoing creative copy. Competition is defined as companies that engage in the same industry and business units (e.g., Furniture, Automotive, etc.) as you. The market area is defined as the area where the marketing message naturally reaches through DMA or 60 miles from the city center of the client's service area(s).

Naturally, we exclude any potential future competition in markets where you are not currently active at the date of signing.

We do not limit Media Buyers in any market. Media Buyers get better deals for larger volumes, making it beneficial for the client to have the Media Buyer available to do as many buys as possible to secure the best deals on the client’s behalf.

Do you do digital marketing?

Wizard of Ads® for Services can provide a host of digital marketing solutions for services. Wizard of Ads® has specialized Partners that provide digital services that serve services effectively. Under no circumstances will digital marketing services be offered without Wizard of Ads® for Services core solution.

It is most likely that Wizard of Ads® for Services will work with your existing digital partners and suppliers. If you do not have a reliable digital provider, we would be happy to introduce you to a number of great providers that play nice with Wizards.

Do you do jingles?

Wizard of Ads® for Services can assist you in getting a jingle for your business. Like any other tactical element of a marketing strategy, we do not produce a jingle for the sake of a jingle.

If you do not have a story or a strategic reason to have a jingle...or an ad campaign to tie it to, do not waste your hard-earned money on a jingle. You are wasting your time and money.

When you do build a single unified marketing strategy that incorporates a jingle for a specific (often scientific) reason, we have a Jingle Wizard who has studied the art and science of jingle design.

He will score you an original, royalty-free jingle, including professional singers, musicians, and producers. He will not knock off a generic jingle from a publicly available music bed that sounds like everyone else's jingle.

Your jingle will serve a very specific reason and produce a very specific result. Have you guessed how much we love jingles yet?

Who owns the copyrights?

Wizard of Ads® for Services owns copyrights for two very specific reasons. We also provide a fair use clause in all contracts to ensure you are in no way limited to the access of your creative works, whether you are working with us or not.

The first reason we own your copyright is to ensure that we do not have to go up against our own creative works in other markets we serve. This means you are not allowed to lend, give, borrow, tweak, rent, lease, or sell your creative works to any other company at any time.

The second reason we own your copyright is that we can establish a one-time value for your creative works in the event that someone steals the content. Upon selling you the copyrights, you can go after the perpetrator for theft and make a considerable bounty in a slam dunk case.

Here is how Wizard of Ads® word the fair use of your copyright for as long as your business is in operation:

All writing and/or marketing materials we create for you are not works-for-hire. Wizard of Ads® for Services hereby irrevocably grants you, and your successors in interest, the non-exclusive, royalty-free, non-transferable, and worldwide right to use the Works in connection with the marketing of your business pursuant to the Marketing Strategy for so long as your business is operational.
How do I measure brand results?

There are a number of interesting ways to measure results. Some people like to get unique identifying telephone numbers, or create branded URLs that redirect to landing pages or the website. However, much of this is a waste of time and energy as it never tells the true story of the brand journey and how it affected the decision-making process.

Other indicators of brand effectiveness include tracking new customers, reactivated customers, or running a brand equity survey to get a sense of your share of mind. Digitally you will see direct search increase, which cannot be affected by anything digital, as well as branded keyword inquiries increase. You’ll, of course, need to get your digital people to add these to your campaigns if you hope to see an increase in conversions.

Wizard of Ads® for Services racks the simplest of indicators. Top line revenue. When your branding takes effect, and the company responds in kind from the phone call or form fill-on, top-line revenue will increase. Efficacy is plotted on a T12, and total lead volume from all sources is tracked.

12 things you should know before signing up.
  1. Quality relationships take time. Branding is a long-term strategy. That’s why most services do it wrong, or not at all. There is always a lag between the start of the new campaign and the time it takes your customers to connect the dots. You MUST BE READY, WILLING, AND ABLE to endure this lag period. In our experience, the lag is typically 6 to 9 months, depending on how competitive the marketplace is, your company’s reputation, your budget in relation to reach, and the eight uncontrollable environmental factors. During this time, we will be helping you implement a transition plan to ease the pain. The good news is that this lag only happens once.
  2. Decisions by Committee. We completely reject the notion of decisions by committee. We work with a single, courageous decision-maker. We welcome decision influencers, but we only look to the Owner for the final decision. All decision-makers and influencers must be involved in the Uncovery and Marketing Strategy Presentation if they want to offer input in the future. It is critical that we have a 100% fully approved plan that can be defended and championed by all leaders in the organization.  
  3. Proven Strategy. That means we are not the low-cost provider. With hundreds of service clients and a playbook of strategic devices, tools, and tactics, this isn’t a guessing game for us. We know what to do to make your goods and services appealing to potential buyers. If you can deliver the goods, we can  build the relationships. If you are uncomfortable with the idea that you are paying us less now so that you can pay us considerably more once revenues allow, please do not commit. We intend to be your true partners, in sickness and in health...so long as you own your business.
  4. Automatic Payments. Everything is on automatic payments. If you struggle with managing cash flow, figure that out in your business first. We accept all major credit cards and ACH payments.
  5. We Cause Problems. If you don’t have a capacity issue now, I promise you will in about 9 months. Let’s deal with recruitment out of the gate as part of your comprehensive marketing strategy.
  6. We Own the Copyrights. All writing and/or marketing materials we create for you are not works-for-hire. We irrevocably grant you, and your successors in interest, the non-exclusive, royalty-free, non-transferable, and worldwide right to use the Works in connection with the marketing of your business pursuant to the Marketing Strategy for so long as your business is operational.
  7. Brand Building. We will be steering you to limit the use of discounts, rebates, coupons, and sales to attract clients. We know this feels counterintuitive to many, and we will clarify our reasoning. Rest assured, we have considerable experience in creating similar offers that are not damaging to your profitability, your brand’s integrity, and your preferable long-term client relations.
  8. Creative Authority. We must have creative authority over the words. You can accept copy as written or reject it outright, but you cannot modify the words yourself. If you do not like something as written, we are happy to discuss it and make the necessary change to maintain the integrity and intention of the words chosen. Alternatively, we will scrap the concept and create new copy that you are happy to get behind 100%.
  9. Proprietary Algorithm. The media buy must be structured in a very specific way, including running a full 52-week schedule. It is based on brain chemistry, not P&Ls. Once we have committed to the buy, it’s important to avoid adjustments unless they are calculated additions.
  10. Knucklehead Factor. You should expect knuckleheads. For example, when you start running ads that are certain to get attention, you need the courage to continue running those ads, even when you receive complaints. We celebrate complaints. It means we’ve made people feel.
  11. Digital Weasels. In about three months from the time your advertising campaign hits the airways, your digital marketers will show you a marked increase in direct and organic traffic. Some Digital Marketers will mistakenly claim this success as their own. Done properly, you can continue to spend less and less on digital lead generation by increasing your branded keyword online presence.
  12. Annual Marketing Meetings. Travel permitting, we prefer to hold Annual Marketing Meetings (AMMs) outside your city. Years of experience have taught us that we get better results when decision-makers are outside their sphere of influence, away from the day-to-day distractions of the office.

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