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Don’t Buy This Ad

By Frugaling 8 Comments

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Photo Christopher Michel/Flickr

Flip an axis, make millions

Vietnam, hippies, and the civil rights movement all fomented into a powerful decade: the 60s. Flowery colors exalted a message of happiness and love over war. The Baby Boomer generation entered the workforce in droves.

Profits were to be made, and companies were eager to snatch even small portions of this new market. The continued growth of suburbs spawned a movement towards independence via cars. At this time of great economic and scientific potential, one auto company, VW (Volkswagen), created one of the most iconic advertisements ever made.

Printed in black, bold lettering was the word, “Lemon.” And above the text was a classic VW Beetle. Lemons were unreliable cars, and the VW ad suggested that the company carefully screened out those cars. Only perfection would be accepted; or, as they stated, “We pluck the lemons; you get the plums.”

Turning a word on its axis and daring readers to read on was risky. The advertisement had the potential to make consumers think, “VW Beetle is a lemon.” If they stayed for the explanation, the ad became clear; subtly, they were suggesting that other companies don’t care about reliability as much. By using “lemon,” they capitalized and succeeded in selling significantly more cars. It worked.

How “don’t buy” becomes “buy more”

In 2012, another company took a big risk: Patagonia. The corporate and marketing teams noted that there was a growing movement towards sustainability. Encompassed in this trend were simple living aficionados, minimalists, and value-oriented consumers. These careful consumers wanted great quality in responsible packages.

This Patagonia’s niche for quite some time. They advertised fair-trade, organic, and environmentally friendly products. Sales were growing, but then they decided to bet the farm on one massive ad in The New York Times. With bombastic, bold text, they wrote, “Don’t buy this jacket.” Behind the text was a Patagonia jacket.

Underneath the ad, the company focused on five key words: reduce, repair, reuse, recycle, and reimagine. Every word was paired with a communal pronoun of “We.” It took everyone to reduce the carbon footprint, make the garments last, and find good homes for them after use. Patagonia seemed to be advertising that consumers take good care of the goods, and consider repairing them before throwing them away. All solid virtues.

These value-laden terms were inspirational to those who had suffered through The Great Recession. Because the company struck a chord with the current market demands, the company profited royally. After that advertising campaign, the company saw double-digit growth.

Ironically, that’s unsustainable. Double-digit growth, compounded repeatedly, would make the company larger than Apple in a few years. And never mind the horrible environmental costs that would be necessary to produce these garments.

Your values can become a manipulation tool

Nefarious. That’s the word that comes to mind when companies manipulate us through our values. The trick is subtle, and if you blink you’ll miss it.

For the aspirational types, there’s Gucci, Coach, and Louis Vuitton. For the trend setters, there’s H&M and Express. For the recreational, there’s The North Face, Columbia, and even Patagonia. Each brand is shaped by its consumers, but also shapes their consumers – the effect is bidirectional. In other words, we affect brands and they affect us.

If our values center on sustainability, kindness to the Earth, and repairing over ridding, a chicanery of sorts can be used against us. Without the brand awareness and heavy advertising, we could go to Goodwill or any other secondhand store for options. The clothing would be in fine shape or could even be repaired to return to like-new status. But we don’t, and there’s a reason why.

Corporations are powerful. Even the kindest ones can sway us from choosing another, more affordable option because they espouse “our” values. We like when we see our values portrayed in mission statements. We like that connection and feeling of being a part of something larger than ourselves. The brands fill that void. They provide a home for values.

So, should I buy that shirt?

Patagonia plainly states “Don’t buy this shirt.” Unfortunately, to those that connect with anti-consumption, anti-materialism, and minimalism, it’s hard not to foam at the mouth with lust for this company’s ad.

I love it! That’s the ad for me. It speaks to my heart. Despite the clear declaration to avoid purchasing their clothing, I can’t help but be intrigued and want to support them.

Subtly, the company is able to supplant a more frugal choice when the time comes to buy something. Goodwill doesn’t have the marketing budget of Patagonia, so the first reaction isn’t to shop there. But it’s more sustainable, frugal, and creates jobs for some of the most disenfranchised in the community. That’s a win-win-win, and it doesn’t cost us $80, $90, or $100.

To be clear, there’s nothing wrong with supporting companies that share your values. But know that this is a marketing trick, and when you choose VW or Patagonia after seeing that advertisement, it’s worked. They got you.

Filed Under: Social Justice Tagged With: ads, advertising, Anticonsumption, Clothing, Consumption, Marketing, Materialism, Patagonia

Think You Can Trust Credit Card Reviews? Think Again.

By Frugaling 10 Comments

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Advertising in New York City. Flickr photo by Pascal Subtil

These ads are everywhere!

The multinational, multibillion-dollar bank, JP Morgan & Chase, spent about $1.9 billion on advertising in 2013. That was down from a peak of $2.35 billion in 2011, but still one of the largest amounts by any bank. With that kind of money, you should be curious what they get in return.

Advertisements for companies like Chase, Citigroup, Barclays, and others are plastered over billboards, magazines, newspapers, and websites. You’ve likely passed by one of their ads today if you live in a modest size city. Heck, there could be one next to this article, due to the Google ads running on Frugaling!

That money is spent to attract new “customers” of credit. Their hope is to entice people with signup bonus offers, and keep them for life. After they click an ad, sign up online, and begin to swipe, the banks begin to profit. From credit card transaction fees to late payment fees to cash advance fees to interest rate fees, companies enjoy lucrative profits. For every new customer, banks trust they’ll make hundreds of dollars over the next few years – if not more.

Personal finance writers are easily influenced

Those advertising pressures and interests can trickle down. Websites that aim to address personal finance concerns and offer advice might succumb to the fire hose of potential profit available to them. With my hat in hand, I must admit I was one of them.

I made thousands of dollars in about 1.5 years by marketing credit cards. By placing links to select offers, I was able to make $50, $75, and even $150 per person who signed up. The affiliate money helped me radically change my life and pay off my debt. But as it helped me pay off my debt, I began to see how I had been duped.

In financially unsound and uncertain situations, people do things they’d rather not do. Frankly, society sometimes encourages us to put our heads down and work through the pain and ethical dilemmas – ignore your internal compass for the good of the company, profit, and revenue. I had become one of those people.

When reviews are really advertisements

Reviews aim to feature both the pros and cons of certain products. Readers want honest feedback and advice from authors, but they weren’t getting it. Visitors to my site were coming droves to see my “reviews.” But that’s not what they were really getting.

Unfortunately, moneyed interests in banking have a tremendous sway on the rating of products. Look through many websites that market credit and banking products, and you’ll begin to notice an overwhelming pattern of 4- and 5-star reviews – across the board. With this positivity, you’d expect credit cards to wash your dishes, clean your laundry, and chauffeur you to work.

How could any company’s product be rated this highly? There’s a reason for optimism and it all comes down to money. Those advertising dollars – billions from banks – trickle down to the simplest of bloggers, directly influence the content, favorability, and overall reviews.

Visitors who are interested in honest, open advice might be shocked to know that when they click that link to sign up, they are crediting that blogger hundreds of dollars in the process. Even more, that the entire review was fabricated to drive more clicks to the bank’s site. When I wrote these articles, I suppressed the negatives to encourage clicks. I was advertising products, and framing them as reviews.

Credit cards aren’t the devil, but they’re not for everyone

We live in a world where big banks spend billions to get at us. Their money travels onto TV, print, and diverse digital media. Eventually, it even lands into the pockets of personal finance websites. That’s when the magical influence occurs, and people end up following the manipulated “advice” of trusted sources.

With revenue pouring over the Internet from companies, my real advice is simple: be skeptical. My hope is that no one gets tricked into thinking that a writer completely – and out of his or her own volition and without profit motive – decides to write a credit card review.

Here are 9 important questions you should ask yourself before following any credit card review:

  1. Do the reviews link directly to the bank’s sign up forms?
  2. Are there affiliate tags embedded in the links?
  3. What makes the writer optimistic about the company and card?
  4. Do they personally use all of these cards that they recommend?
  5. What income bracket is the reviewer in?
  6. What’s their credit score?
  7. What was their experience with customer service representatives?
  8. How long has the reviewer been providing advice?
  9. What makes them an expert in credit cards?
  10. How might incentives influence the quality of this review?

Credit cards aren’t the devil, and they don’t tend to be the sole contributor to debt. Usually, it’s a lifestyle of spending more than you can afford, with little income to pay the bills. That doesn’t mean excessive purchases at Burberry and Hermes; rather, that any amount over what you take in will lead to debt (groceries included). Credit cards just facilitate that process – faster – as the fees quickly compound.

When personal finance writers begin to weigh in, it’s vital that their advice be accurate, fair, and balanced. Unfortunately, it’s frequently manipulated by advertising revenue potential. I learned how the money could influence what I ultimately write, and I no longer want to lobby for an industry that sometimes preys off of people that genuinely need help. If you see a review article from me, it’s my hope to be as analytical as possible.

Filed Under: Social Justice Tagged With: ads, advertising, Banks, Barclays, Chase, Citigroup, credit, credit cards, dollars, Google, Marketing, money, Personal Finance, writers

Do I Regret Deleting My Facebook?

By Frugaling 19 Comments

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deletefb

I joined Facebook when it was limited to college students. I remember that scary moment when the company allowed others to join (i.e., older adults and high school students). I remember when things you liked could be shared with other friends, and you could see what others were interested in. I remember when status updates were framed in third-person thoughts (“Sam is…”). It was my home away from home, and a bastion for friends and family to connect. And then, one year ago, I deleted it all.

When I joined in 2007, Facebook was a select, elite social network. Everyone I knew wanted an account. Eventually, they all got one. Where once, my friends would’ve texted or emailed to update me, they “Facebooked.” Their messages and updates became broadcasts — written on semi-public “walls.” Others could contribute and participate. Moments were shared — online.

It was a pure experience and I never really noticed advertising. There was an undercurrent of concern about Facebook’s privacy policy and habit of defaulting to public profiles. But I stayed informed and on top of it, always making my profile more private. Facebook was a safe place to share my thoughts and memorable moments.

There was that first party, first relationship, first love, and first adult vacation. All was captured and curated. Others could peruse and get to know me; albeit, in a detached, digital sense. And that feeling grew and grew, as I realized that my ballooning friend network wasn’t about friendship.

In college, I was frequently in the public eye and had built a large professional network. Facebook served as a hub for connecting with those people — a nascent LinkedIn. But I embraced the opportunity to stay in contact with important people. That networking and messaging led me to meet the Governor of Colorado a couple times and enabled me to fundraise thousands of dollars. It was wonderful.

But it was also the home of my first breakup, the next breakup, and then the few after that. Facebook showed my hurt. The site featured a fractured post-breakup silence and photo-less few months. It ebbed and flowed, as did my emotions. Facebook was stirring powerful emotions in me. Oftentimes, these weren’t positive and supportive.

I was surrounded by people I didn’t really recognize, and bombarded with more advertising than ever. Facebook, the personal social network, had become another rehashed home for brooding, breeding, and time-wasting.

Last November, I evaluated whether Facebook was still important. The things I shared were no longer liked by the people I was supposedly closest to, and that hurt. A relationship I was in was about to collapse, and I hardly wanted to share that with this disconnected, jumbled group of “friends.”

Hovering over the delete link, I contemplated life without Facebook. There were photos, videos, and status updates. But more than anything, there were moments I was saying goodbye to — exceptional and horrific.

I clicked delete, and the stream went black. Digitally done, my home away from home was burned. All those years spent networking and adding friends were gone. I felt a pain of uncertainty and unknown. Had I made a mistake?

It’s been about one year since I deleted my Facebook, and I can tell it’s been the best decision I’ve ever made. My communication mediums regressed to text messages, emails, and — gasp! — phone calls. Slowly, friends reached out and mentioned that they noticed I was no longer online. Some kept in touch and others disappeared.

Now, I have time. Instead of incessantly swiping through news feeds and liking incessantly, I read, write, and connect (in-person) more often. I’m more informed about world politics and news. I’m more concerned with helping others and making a difference. I’m not as interested in my next profile picture. I don’t care as much about taking a group photo (for others to see). I’m not as concerned about new clothing and products that’ll make me look affluent and connected.

Embarrassingly, I used to look through my photos, clicking infinitely — circling through them over and over again. Facebook held on to me — aching for me to relive my past and share every moment. There was an emotional high and low to look back on what I’ve done, where I’ve been, and who I was with. But that is largely gone. In its place is a powerful present-focus and interest in what my future holds.

Done with the ads. Done with shared walls. Done with that time-wasting.

One year down, infinite more to go.

Filed Under: Social Justice Tagged With: ads, delete, Facebook, Friends, reflection, story

August 2014 – Blog Income Report

By Frugaling 10 Comments

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Important: Preamble before profits

Despite being a personal finance website and blog, I’ve hesitated to regularly provide specific earnings. Each time I’ve shared writing revenue — at 6 and 12 months — it’s taken me some time to deliberate whether I should. My revenue isn’t everything, and frankly, it’s been steadily declining since last summer. But while I made less revenue, I saw more traffic — the important metric to me.

Many personal finance blogs share their earnings on a regular, monthly basis with their readers. My fear in regularly doing so may come from an irrational place, but I worry that sharing this information is like eating junk food; the syrupy sweet taste goes down easily, but it has a vapid nutritional value. Last month, I decided to share those income stats and many readers liked seeing how the website was helping my financial goals. Hope these stats help in your own blogging/writing journey!

August 2014 — Blog income report

August was a rough month for earnings. Unfortunately, the continued slump and decline in earnings has not stopped. At one point in January and February of this year, I was making over $5000 per month from the site. Now, I’m lucky to be making over $500. It’s definitely changed how I budget for the future, and I wish there was something I could do to change the situation. Thankfully, my traffic continues to stay strong, along with social media growth. I crossed over 1,400 followers on Twitter, which is a tremendous milestone for me.

Google Analytics Screenshot of Stats
Here’s what my traffic stats looked like this month.

LinkOffers Affiliates
$485 (Up $69 compared to last month)

Again, affiliate sales led for income. Buoyed by two credit cards, Barclaycard Arrival and US Airways, I saw a slight increase in earnings this month. Over the last few months, LinkOffers has steadily cut the commission on credit cards. Consequently, this is much of the reason why these numbers slumped since the beginning of the year. I have not been regularly advertising affiliate deals and links, which may also be contributing to the slide and stagnation of revenue. I have some work to do here.

Google AdSense
$40.47 (Down $207 compared to last month)

Last month I had a hugely viral article that brought in hundreds of thousands of visitors. It was unreal. That spike in traffic artificially cause Google AdSense revenue to expand. Now, it’s back to more realistic values. This value tends to track around $50 per month. For August, I ended up moving an ad space to the beginning of articles to try to keep ads highly visible. Thus far, I’m not seeing any major revenue boost from this switch.

Amazon Associates
$0.20 (Negligible change)

Somebody mentioned that Amazon’s Associates program may have taken a big dive due to the Smile program. This Amazon initiative encourages shoppers to choose a charity to support. By selecting one, a percentage of your purchases go to that charity. It’s a great program, but it looks like it may remove your referral link. This may be reducing any commission possibilities.

Total August 2014 Earnings: $525.55 (Down $139.53 compared to last month)

Forward-looking statements

Last month I mentioned that I’d like to begin reviewing books, films, and media that help diversify the conversation about personal finance. I decided to start with a super ambitious read called All the Presidents’ Bankers by Nomi Prins. I’m about halfway through this impressive tome of financial and banking history. Thus far, I’m loving it, and can’t wait to share it with you all! Likewise, I will be writing a review of a new documentary, Rich Hill. This film is about severe poverty in a small, midwestern town. Look forward to those soon.

As for revenue, I’m not working actively enough to change the financial situation each month. That’s something I need to work on. I’ll likely revamp and republish a couple articles on some of my favorite affiliate links.

Thanks for reading! If you’ve got questions, comments, or advice, I’d love to hear it below!

Filed Under: Make Money Tagged With: ads, August, Blog, Blogging, Google, Income, LinkOffers, money, Write, Writing

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