Does advertising indicate product quality? Evidence from prelaunch and postlaunch advertising in the movie industry

Literature on the informative role of advertising indicates that advertising quantity can serve as an indicator of product quality. As product life cycles grow shorter, firms in many industries spend significant amounts on advertising during the prelaunch period to create large initial demand. Thus, the role of prelaunch advertising may differ from that of postlaunch advertising, and a proper understanding of these differences is important. This study provides an empirical investigation of whether advertising is a reliable indicator of quality before and after product launches, using the data from the movie industry. Analyses of 1078 movies released during 2003–2011 show that postlaunch advertising is a reliable quality indicator and increases revenues, whereas prelaunch advertising is not a reliable quality indicator, even if it leads to higher revenues.     

Muslim millennials’ attitudes towards fashion advertising

Abstract

Recognizing the rapid growth of fashion marketing efforts in Muslim consumer markets, this article aims to investigate attitudes towards fashion advertising between Muslim millennials from two countries of diverse advertising environments. The conceptual framework used for investigation was adapted from an existing framework for attitudes towards advertising. A sample of young millennials (n?=?1,691) responded to a questionnaire-based survey measuring items related to beliefs, attitudes, and behaviors towards fashion advertising, in addition to religiosity and fashion consciousness. Analysis of hypothesis testing was performed using Structural Equation Modeling (SEM). Findings revealed that beliefs towards fashion advertising may be grouped into positive and negative factors which influence attitudes towards fashion advertising. Additionally, fashion consciousness also influences Muslim millennials’ attitudes towards fashion advertising. This article also examined the diversity of Muslim millennials in terms of religiosity, gender, and advertising environment on beliefs, attitudes, and behaviors towards fashion advertising. Analysis of group comparisons was done after establishing measurement invariance in Multi-group Confirmatory Analysis (CFA). Differences in attitudes towards fashion advertising across religiosity, gender, and cross-national groups illustrate the diversity within Muslim millennials. These differences are explained in terms of differences in antecedent positive and negative beliefs. This article contributes to the literature of attitudes towards advertising by illustrating the influence of gender, religiosity, and advertising environment on attitudes towards fashion advertising in diverse Muslim markets.     

The academician–practitioner gap in advertising

The existence of the academician–practitioner gap is readily acknowledged and widely discussed in the marketing/advertising literature. This paper analyses key writings on the nature of the academician–practitioner rift and proposes a new approach complementing the literature. The review identifies five prevailing explanations why miscommunication between academicians and practitioners exists: (1) the failure of academic knowledge dissemination systems; (2) problems with the knowledge content and knowledge form academicians produce; (3) counterproductive academic organisational systems; (4) questions of philosophy of science; and (5) practitioners’ inability and unwillingness to process academic information. The study concludes that one potential explanation is entirely missed in these accounts: the possibility that practitioners’ knowledge about how advertising works is an autonomous construct, which has its own rules and deep structure, and resists simple assimilation attempted by academicians. The study also complements the existing literature by basing the review on firm theoretical grounds: the authors apply the influential sociological theory of professionalisation. Finally, future directions for research investigation are suggested, which moves the predominantly normative discourse into the empirical world.     

Does gay-themed advertising haunt your brand?

This study is designed to investigate the effect of gay-themed advertising as well as consumers’ gender, tolerance towards homosexuality (low vs high tolerance) and consumers’ brand commitment (low vs high commitment) on attitude towards ad and attitude towards brand. The study result suggests that people exposed to non-gay-themed ads had more positive attitudes towards the brand than did people exposed to gay-themed ads. The study findings suggest that ads featuring homosexual imagery could lead to negative brand evaluation. The study finds that heterosexual males exposed to such ads had less favourable attitudes towards the advertising and brand as well. The study finds that subjects with high tolerance towards homosexuality have more positive attitudes towards the ad and brand, and have higher purchase intention than do subjects with low tolerance. Furthermore, the results suggest that people with high brand commitment had more favourable attitudes towards ad and brand. Practical and theoretical implications are discussed.     

Can your advertising really buy earned impressions? The effect of brand advertising on word of mouth

Quantitative Marketing and Economics - Paid media expenditures could potentially increase earned media exposures such as social media posts and other word-of-mouth (WOM). However, academic research...     

Do stock prices undervalue investments in advertising?

Under the efficient market hypothesis, the stock price incorporates the full value of a firm’s advertising. If so, advertising spending should not be associated with future abnormal stock returns. Nevertheless, from 1995 to 2015, advertising spending often leads to abnormal stock returns the following year. The strongest results surface for consumer goods and services where advertising used to build brand equity can carryover from one year to the next. No significant differences arise for healthcare, industrial goods, or retailer advertising. Healthcare and industrial goods advertising is often modest. Retailer advertising that builds traffic should have little if any carryover into the following year. These results may help marketing managers defend an advertising budget whose benefits carryover into the following year, but hurt current profits. Having more investment analysts on Wall Street with a marketing background should help reduce this overly conservative “wait and see” discount for carryover advertising.     

Survey of Internet users’ attitudes toward Internet advertising

Many have speculated about the current state of Internet advertising (IA), how it compares to advertising in general (GA), and its implications for traditional marketing models and practices. Although many estimates exist regarding who uses the Internet as well as guidelines about how best to design IA, little is known about Internet users’ attitudes toward IA, much less what characterizes these attitudes. To test this, a national sample of over 400 participants with at least some exposure to the Internet was surveyed. The results revealed no majority opinion of IA: approximately a third of respondents liked, disliked, and felt neutrally toward IA, respectively. A regression analysis indicated that enjoyment of looking at Internet advertisements, its informativeness, and its utility for making behavioral (purchasing) decisions contributed to participants’ attitudes toward IA. Enjoyment of looking at IA contributed the most to attitudes toward IA, yet at the same time appears to be one of IA's weakest features. In order to assess whether attitudes toward and perceptions of IA might reflect attitudes toward advertising in general by this demographic group, rather than attitudes toward IA per se, responses were compared to those of a demographically weighted-to-match national sample of over 1,000 who answered similar questions in regard to advertising in general. The results indicate that more respondents found IA to be informative and trustworthy than a demographically similar sample found GA. Even though the attitudes and perceptions of IA and GA were significantly different, the structure of GA and IA attitudes was the same. Implications for the design of IA are discussed.     

Investment in online advertising and return on sales: Does it pay to outsource the services to an advertising agency?

Abstract

The effect of investing in online advertising on a firm’s financial outcomes can depend on whether or not the development and implementation of advertising campaigns are managed by advertising agencies. Agencies may have experienced professionals or workload to perform these jobs, but the costs are greater. This paper aims to investigate the effects of investments in digital marketing on the financial outcome of a company’s services, comparing whether or not it is outsourced to advertising agencies. The secondary data relates to services advertised and marketed by a firm. We tested the possible moderating effect of outsourcing the service in the relationship between investment in online advertising (Google and Facebook) and return on sales (profit margin), by controlling the effect of covariates. Through four regression analyses, the results showed that outsourcing the service moderates the relationship. Specifically, the higher the amount of advertising investment, the more it pays to outsource the service to an advertising agency in order to generate greater profit margin. But with a low investment value, it does not pay to outsource. This study helps to identify situations in which it pays to outsource digital marketing services to an advertising agency.     

A retrospective on the state of international advertising research in advertising,communication, and marketing journals: 1963–2014

Scanning from the earliest to the recent literature on international advertising research, this study aimed to provide a more comprehensive and detailed picture of the research trends and patterns across the advertising, marketing, and communication disciplines over the past half century. Findings exhibit continuous growth in terms of the quantity of international advertising studies. While theoretical foundations need to be further solidified and elaborated, methodological and statistical rigors have been increasingly underpinned in international advertising research. Further, this study recognized authorial and institutional productivity, and influential articles in the field of international advertising research. The finding indicates that scholarly endeavors are necessary for diversity of countries studied in future research.     

Investigating agency–client relationships in the Polish advertising industry

This paper explores selection and retention factors as perceived among agencies and clients operating in the Polish advertising industry. Initially, a broad review of advertising and marketing literature is presented in the context of those variables perceived to be important for (a) selecting/evaluating ad agencies, and (b) maintaining client loyalty and client retention. Two ad agencies and two advertisers in Poland were approached in order to explore and evaluate the variables in more depth, and as a result 15 key variables emerged that became the focus for the study. A questionnaire was designed and a postal survey was later administered to advertisers and agencies with the intentions of obtaining the views of both parties. Emerging findings of the study indicate that clients tend to focus on sales pitch and factors relating to past performance in recruiting an agency. Results also reveal that there was a close consensus among agencies and their clients concerning the relative importance of retention factors such as quality of service and customer care attributes.     

Creativity identity in Colombia: the advertising creatives’ perspective

ABSTRACT

This exploratory paper analyses the way in which context influences advertising creativity practices. To establish the role of context, this paper utilized both Social Identity theory and Systems Model of Creativity. Twenty four in-depth interviews with top creative directors of the main advertising agencies in Colombia (Latin America) were collected. Findings suggest the Colombian creative identity is under construction. This identity is influenced by the broader Colombian social context including the unique business characteristics of the country's communications industry, the level of economic hardship experienced by the population, and the actual social conflict lived situation. These findings extend the Systems Model of Creativity to include social hardships and industry level characteristics. Several practical implications not only in relation to Colombia, but also the broader global advertising industry are presented.     

Am I intruding? Developing a conceptualisation of advertising intrusiveness

This study develops a conceptual framework of advertising intrusiveness that extends previous research on the topic by examining both drivers and consequences. To achieve this, the work draws on in-depth interviews with 29 adult consumers who report experiencing intrusive advertising in their daily lives. Three drivers of advertising intrusiveness are identified – temporal disruption, visual disruption and flow disruption – along with three consequences – emotional response, behavioural response and cognitive response. From these drivers and consequences, a conceptual framework of advertising intrusiveness is developed based on ideas about psychological reactance. Based on this framework it is proposed that, while all advertisements might ultimately be perceived as intrusive, an advertisement’s characteristics, which are the identified subcomponents of the drivers of intrusiveness, exacerbate the resultant consequences.     

Fear appeals in anti-smoking advertising: How important is self-efficacy?

Abstract

Fear appeals are frequently used in anti-smoking advertising. The evidence on the effectiveness of fear appeals is mixed, and in some studies strong fear appeals have been found to reinforce the undesirable behaviour. Individual self-efficacy may play a role in moderating the effects of fear appeals. In advertising contexts where the intention was to encourage socially desirable behaviours, it has been shown that greater self-efficacy is associated with a more positive response to fear appeals. Similarly, in such contexts, the perceived ethicality of a fear-appeal advertisement appears to be positively related to self-efficacy. The purpose of this article is to examine the relationship between self-efficacy, perceived ethicality, and the impact of advertising on behavioural intentions in a context where the aim is to discourage undesirable behaviour, namely anti-smoking advertising. Questionnaire data were gathered from 434 respondents in London, England. Respondents with higher reported self-efficacy were found to have more favourable views of the ethicality of fear-appeal advertising, more positive attitudes towards the advertising, and stronger intentions to quit smoking. It is recommended that when using fear appeals in advertising to discourage undesirable behaviour, advertisers should incorporate messages designed to enhance self-efficacy.     

Animals in advertising: Love dogs? Love the ad!

Advertisers frequently use animals in ads, but little academic research focuses on consumer reactions to their use. This study uses the heuristic-systematic model (HSM) to examine consumer response to animal companions in advertisements. Specifically, HSM serves as the theoretical foundation for testing the effects of animal heuristic cues on the formation of attitude toward the ad, attitude toward the brand, and purchase intention. In the current study, the presence of the dog increases heuristic processing, concurrent processing, and ultimately attitude toward the ad. The article proposes managerial implications and avenues for future research.     

Billboard and cinema advertising: Missed opportunity or spoiled arms?

Advertising remains one of the most popular marketing instruments, and many studies have studied its sales effectiveness. However, prior research has either looked at the total spending of a brand/firm, or has focused on the most popular media, especially TV advertising. Even though huge amounts are also spent on “smaller” media such as billboards and cinema, little is known on their effectiveness.     

Why do Caucasian advertising models appeal to consumers in Taiwan?

To test the influence of model ethnicity on advertising effectiveness in East Asia, this research proposed a cue-triggered value-expressive model, according to which positive attitudes towards western models help consumers with independent self-concepts express themselves. Western models generated more favourable ad responses (ad credibility, diagnosticity and attitudes), promoted stronger self–brand connections and led to more favourable brand attitudes than did Asian advertising models among independent respondents in Taiwan. In contrast, consumers with interdependent self-concepts did not exhibit such differences. Independent self-concepts also consisted of two sub-dimensions: horizontal individualism focused on the desire to be different, and vertical individualism centred on the desire to be superior. The former dimension accounted for the enhanced effects of western models. Three experiments confirmed that expressing positive attitudes towards these advertising models served value-expressive functions among consumers with uniqueness self-concepts when they read ads promoting products that were publicly (Study 1 and 3) or privately (Study 2) consumed.     

How does awareness evolve when advertising stops? The role of memory

Extant models posit that awareness declines immediately and gradually after the cessation of advertising, whereas anecdotal evidence from managers suggests awareness stays constant for a while and then decays rapidly. This pattern arises because consumers remember advertisements for a finite time before they forget. Hence, we extend advertising models by incorporating the memory for ads. We conceptualize the role of memory as ??delayed forgetting of ads?? and capture it using delay differential equations, which exhibit richer dynamics and expand the class of dynamic models used in marketing. Analytically, we derive the 90% duration of advertising effects under various scenarios. Empirically, we analyze awareness evolution in the absence of advertising for the Peugeot car brand. We not only find strong support for the proposed model, but also estimate the memorability of Peugeot ads to be about 3?weeks. Moreover, if we ignore consumer memory as in the extant models, we would overstate the forgetting rate by 39%. Finally, we discuss managerial implications and identify new avenues for further research.     

When does green advertising work? The moderating role of product type

Using environmental appeals to promote products is a popular marketing technique. However, little is known about how the effectiveness of green appeals varies across different product categories. The purpose of this study is to examine whether and to what extent green appeals in advertising are effective and how that effectiveness differs between products with more versus less environmental impact. Using the theoretical frameworks of ad-product fit hypothesis, our two product types (more harmful vs. less harmful) × two appeal types (green appeal vs. non-green appeal) experiment shows that ads with a green appeal are more effective for more-harmful products, whereas for less-harmful products, there is no significant difference between a green and a non-green appeal. Furthermore, cognitive response was found to mediate the interaction effect of green appeal and product type on ad persuasiveness. Theoretical and practical implications of the findings are discussed.     

Adworld2007 published online advertising market monitoring and the latest audience measurement date

9月27日．历时三天、备受业界瞩目的2007中国互联网大会圆满落下帷幕。其间9月25、26日．Adworld2007中国网络广告与互动营销年会隆重举行。与诸多行业交流会议有所不同的是．主办方在DCCI互联网数据中心支持之下．发布了2007年网络广告市场监测与受众测量阶段性的最新调研数据，为参会各方、互联网与网络广告业界的交流互动．提供了立体多维的观察视角和判断依据。本刊特选出几组最新调研成果．以飨读者。[第一段]