. The Transom .

Tuesday, August 15, 2006

Remember who calls the shots

Citigroup has decided to pull approximately $120 million in cable and print ad spending for the remainder of the year in order to help boost the stock price. Who was the engine behind this decision? The shareholders.

Disappointed with a stagnant stock price and unimpressed with the results of Citi's nearly $1 billion (yes, with a 'B') annual ad spend, shareholders called for a cut in Citi's advertising. Not that Citi will be eliminating its advertising, just trimming the fat.

What does this tell us about ad spending? It goes back to John Wanamaker's famous quote. "Half of all money I spend in advertising is wasted; the trouble is I don't know which half."

I applaud the shareholders for forcing Citi's hand. Find a way to use my investment money more wisely than giving it to advertising agencies.

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