Advertising and marketing have become extremely difficult

It was only a matter of time. When the Diamond Producers Association (DPA) was established in 2015, its initial budget of $ 6 million surprised many.

Taking into account the fact that DPA was formed by seven diamond mining companies, including the world's two largest diamond miners, De Beers and ALROSA, the annual budget looked rather small. As De Beers was reported to have invested $ 200 million annually in generic marketing of diamonds for many years, the budget of $ 6 million looked all the more insignificant.

Of course, it is true that De Beers currently accounts for just over one-third of the world's supply of diamonds, while in past times this figure was above 70 percent. But, according to a Bloomberg report, De Beers has nearly halved its annual marketing budget, to about $ 100 million, but this is still a huge amount. In 2015, a diamond mining company is reported to have spent about $ 20 million on just one campaign targeting a generation of two thousand in the United States and China.

Companies such as De Beers, with an annual sales of $ 5-6 billion worth of diamonds, and Russia's ALROSA with its diamond sales in 2016 worth more than $ 4 billion, should actually invest much more in the common boiler. To a lesser extent, but the same applies to other founding members - Dominion Diamond Corporation, Gem Diamonds, Lucara Diamond Corp., Petra Diamonds and Rio Tinto Diamonds.

Clearly, the "problem" is much more difficult than expected, or what the founding members hoped it would be. Advertising and marketing have become extremely difficult. Long gone in the past days, when you could just give an advertisement on television or in a newspaper / magazine and give him the opportunity to do his work.

This is mainly due to the fact that, from the demographic point of view, the population to which the DPA mainly appeals is the so-called two thousandth generation at the age of about 18 to 35, and it is difficult to attract and retain them. Taking into account that they have a rather cynical view of the world and they formed under the influence of the digital age, they can hardly be persuaded by the current somewhat old-fashioned and usual advertising means.

They need to be covered in social networks. But where exactly and how to get to them? Advertising has become extremely fragmented - and expensive. Not only because investments are needed to dramatically increase the number of promotional materials in order to ensure their display to the right audience, but also because research is needed and specialists are needed to break the market into parts and offer ideas that young people find interesting, Amusing or intriguing.

The advertisers must be thinking about the good old days, when a demonstration of television shows or events meant that a significant part of the country's population would sit and watch TV. There is a well-known example in the United Kingdom when the Christmas television show of the popular comic duet Morecambe and Wise in 1977 reportedly attracted 28 million viewers, about half the total population of the UK at that time. And even now in the US, the broadcast of the Super Bowl in American football is viewed, as they say, over 110 million people - about one third of the country's population. But the cost of advertising during Sunday's Super Cup will be prohibitive, even if the annual budget of DPA will eventually be $ 60 million.

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