When retailers and manufacturers advertise together; examining the effect of co-operative advertising on ad reach and memorability

Retailers often feature manufacturer brands in their advertising with the aim to drive sales for those brands and, at the same time, increase in-store traffic. The adoption of such co-operative advertising strategies should reach an expanded audience base comprising of store and brand buyers. Based on empirical evidence in non-retail settings, these buyers are more likely to remember the advertising than non-buyers. This usage-bias effect implies that co-operative advertisements achieve greater cut through than would be the case if either brand advertised alone. Our paper tests this hypothesis in the context of retailer advertisements that feature manufacturer brands in the US, UK and Australia. Our results confirm that a retail brand's shoppers are more likely to recall its advertisements than non-shoppers, extending the usage-bias generalisation to a retailing context. However, while co-operative advertising does expand the buyer-base reach, any uplift in ad-memorability is negated by a reduced ability for buyers of only one of the two brands to recall the advertisement. Information overload on cognitive processing is a possible explanation for this finding, and has implications for extracting value from any investment in co-operative advertising.     

The risk of programmatic advertising: Effects of website quality on advertising effectiveness

Programmatic advertising is prevalent in online advertising. However, it offers managers limited control over the type of website where the ad appears, resulting in brand safety issues. Aware of the risk that ads may potentially display on websites of poor quality (nonpremium websites), managers have developed strategies to reduce this risk. Due to the lack of empirical insights, these strategies are based on “gut feeling” and depend on campaign type (branding versus performance) and brand type (premium versus nonpremium). Our research addresses this void and analyzes website quality effects for premium and nonpremium brands in branding and performance campaigns. Our results show that effects, indeed, vary depending on campaign and brand type, but not in ways that managers might expect. When a branding ad appears on a nonpremium website, attitudes towards the ad and the brand deteriorate, but only for premium brands. In contrast, website quality does not affect awareness for either type of brand. When a performance ad appears on a nonpremium website, it generates fewer clicks; this effect is stronger for premium brands. Overall, these findings enrich our understanding of the consequences of programmatic advertising and highlight the crucial role of website quality dependent on campaign goal and brand type.     

Advertising non-premium products as if they were premium: The impact of advertising up on advertising elasticity and brand equity

Non-premium brands occasionally emulate their premium counterparts by using ads that emphasize premium characteristics such as superior performance and exclusivity. We define this practice as “advertising up” and develop hypotheses about its short- and long-term impact on advertising elasticity and brand equity respectively. We test the hypotheses in two large-scale empirical studies using a comprehensive dataset from the automotive industry that includes, among others, the content of 2317 television ads broadcast over a period of 45?months. The results indicate that advertising up increases (decreases) short-term advertising elasticity for non-premium products with a low (high) market share. The results also show that an intensive use of advertising up over time leads to long-term improvements (reductions) in brand equity for expensive (cheap) non-premium products. Furthermore, an inconsistent use of advertising up leads to reductions in brand equity. The results imply that managers of non-premium products with a low market share can use advertising up to increase advertising effectiveness in the short run. However, advertising up will only generate long-term improvements in brand equity for expensive non-premium products. Finally, to avoid long-term reductions in brand equity, advertising up should be consistently used over time.     

The role of art infusion in enhancing pro-environmental luxury brand advertising

Underpinned by art infusion theory, this present research examines the effect of art infusion on brand attitudes under different brand conditions (i.e. pro-environmental luxury brands and luxury brands) in advertising. Across two experimental studies, this research offers empirical evidence to a moderated mediation model, such that when an advertisement features an artwork (vs. no-artwork), consumers will perceive lower levels of incompatibility between luxury and sustainability, leading to a more favorable brand attitude toward the pro-environmental luxury brand. However, such differences will not occur among consumers evaluating an ordinary luxury brand. The findings of this research broaden the current body of knowledge related to the art infusion effect and provide important implications for marketers in their advertising strategy. Furthermore, these findings suggest that art infusion may be the solution to the dilemma facing sustainable luxury brands since luxury and sustainability are often perceived as incongruent concepts.     

全球广告标准化与全球品牌一致性的关系模型

全球化背景下,通过全球广告策略来建立和维护能被不同国家市场普遍接受的具有独特形象的全球品牌是跨国公司亟需解决的问题,本文据此提出了全球广告标准化与全球品牌一致性的关系模型。全球广告在综合考虑企业内外部因素的前提下,通过战略、执行和语言的不同程度的标准化,可以塑造全球品牌的识别和全球品牌形象,进而实现全球品牌个性、文化、定位和价值的一致性,并最终促使全球品牌正面性、认知度和忠诚度的提升。     

Consistency and commonality in advertising content: Helping or Hurting?

Scholars and practitioners widely argue that strong, successful brands are built on consistent and unique positioning, which should be reflected in the brands’ advertising. Surprisingly, however, little empirical evidence supports this claim, especially with regard to advertising content. The authors investigate whether and to what extent brands’ advertising content consistency—the similarity in the firm’s own advertising content over time—and commonality—the similarity between the firm’s and competitors’ advertising content—affect brands’ sales. Insights emerge from the analysis of the impact on sales of the content of 247 television ads aired by 33 brands in six consumer packaged goods categories over a four-year period. Results indicate that more than advertising spending, both consistency and commonality in advertising content affect sales, especially with respect to long-term cumulative sales. However, brands differ considerably regarding the direction of the effects. While small brands tend to benefit from increased consistency and commonality in advertising content, large brands tend to suffer from increased consistency. Thus, whether consistency and commonality in advertising content will help or hurt depends on the size of the brand.     

Interplays between manufacturer advertising and retailer store brand introduction: Agency vs. wholesale contracts

In retail supply chains, manufacturers' advertising for national brands and retailers' store brand introduction may relate to each other, and two types of contracts, i.e., agency contract and wholesale contract, are widely used. This paper uses game-theoretic models to investigate the strategic interaction between a manufacturer's advertising strategy and a retailer's store brand introduction strategy. We derive the equilibrium outcomes, including wholesale price, retail price, market demand, retailer's and manufacturer's profits under different contract forms. We find that when the product cost is small relative to the perceived value of the store brand, the introduction of a store brand will benefit the retailer. The retailer is more likely to introduce store brands under the wholesale contract than under the agency contract. In addition, compared with the wholesale contract, the agency contract may increase both the manufacturer's and the retailer's profits and lead to Pareto improvement for them.     

Inclusive advertising featuring disability on instagram: Effect on consumer well-being,brand engagement,and purchase intention

Should advertisers continue to promote their brands through brand endorsers without considering their diverse characteristics, or should they embrace diversity in advertising? Gender, age, ethnicity, and sexual orientation are some of the aspects of diversity that have been investigated in advertising research, primarily in the context of Western and developed countries. However, it remains underexplored how physical disabilities in influencer advertising on Instagram affect consumer well-being and consumers’ responses toward brands in a non-Western market. Through an experimental design (including both inclusive and non-inclusive samples), this study examined the effects of inclusive advertising (including disabled persons) on consumer well-being (both hedonic and eudaimonic), brand engagement, and purchase intention. Two studies were conducted to test the hypotheses. In Study 1 (shampoo brand case), a data analysis of 260 young Pakistani consumers revealed that inclusive (vs non-inclusive) advertisements enhance both hedonic well-being (HWB) and eudaimonic well-being (EWB), with a stronger effect for EWB. The spillover effects of EWB and HWB indicated a significant influence on brand engagement and purchase intention, whereas the effect of HWB is significant only on brand engagement. The effects of HWB on brand engagement and of EWB on purchase intention showed a greater influence in the case of inclusive advertisements than in traditional non-inclusive advertisements. In Study 2 (clothing brand case), an analysis of 235 respondents revealed that inclusive advertising drives both HWB and EWB, which have a greater influence on brand engagement and purchase intention when individuals are exposed to an inclusive advertisement featuring disabled persons than a non-inclusive one. These studies confirm that inclusive advertisements attract a more diverse customer base in addition to existing customers. These findings offer theoretical and practical insights for advertising and consumer research.     

The effect of perceived advertising effort on brand perception: implication for retailers in Hong Kong

This paper examines how advertising effort, specifically advertising creativity and advertising believability, may influence consumers’ perceptions of a retailer’s business philosophy, and in turn consumers’ behavior toward retailers in Hong Kong. Altogether five hundred and eighty-three respondents (i.e. 320 college students and 263 shoppers) were surveyed. The results suggested that retailers that are regarded as having more creative advertising are perceived as being more learning-oriented, which leads to higher brand recognition. Meanwhile, retailers that are regarded as having more believable advertisements are perceived as having higher levels of integrity, and as a result are better recognized and more likely to be patronized. This research contributes to literature in retailing and marketing communication by establishing the antecedents and consequences of building a learning-oriented and trustworthy business philosophy in a cultural specific context. It also provides practical guidance for retailers who aim to increase brand recognition and purchase intentions through promotional effort.     

How brand-cause fit shapes real world advertising messages: a qualitative exploration of ‘femvertising’

Abstract

Brand-cause fit, the concept that a brand and a social issue ‘pair’ together conceptually, has been a topic of great interest yet it is not fully understood due to inconsistent findings and limited theoretical development. In this study, we take a different approach to understanding brand-cause fit to explore how and in what ways ‘fit’ shapes advertising message strategies. A growing trend in advertising is ‘brand responsibility’, wherein a brand aligns itself with a social issue. A prominent focus of these messages is gender equality, namely, female empowerment. Advertisers utilize ‘femvertisements’ to emphasize their support of women. The motive behind this work is often called into question, given brands’ inherent desire to sell products. Advertisers should consider how brands ‘fit’ with specific social issues. Through a qualitative analysis of advertisements that received an award for femvertising, this study sheds light on the differences in message themes between brands with high versus low brand-cause fit, specifically target audience brand-cause fit, in an effort to further this literature and advertising practice. Five key messaging themes are elucidated among high-fit brands (overt femininity, fixing the self, being a girl is a hardship, actors on set, and let’s talk about it) and four themes among low-fit brands (low femininity, breaking stereotypes, reminders that women and men do the same activities, and getting men on board); which shape how women are depicted, the overall brand message, and the overall social issue message. Indeed, fit should be considered beyond simple high/low congruence. Implications for advertising practitioners and researchers are discussed.     

A Hong Kong view of offensive advertising

Considerable research has been conducted on offensive advertising in Western countries. However, not much is known about consumers' views of offensive advertising in an Asian context. This research, which was conducted in Hong Kong, aimed at identifying what product/service advertisements consumers find offensive, what executional styles consumers find offensive, consumers' tolerance of offensive advertisements in different media and the effects of offensive advertisements on consumers' purchase intentions. The results from a survey of 200 consumers showed that chat-line services and funeral services were considered the most offensive products or services to be advertised. When looking at the manner of advertising, sexist themes, indecent language and nudity were found to be the major reasons for the respondents finding advertisements offensive. In general, direct mail was considered to be a medium that prompts lower tolerance by consumers to potentially offensive advertisements while men and women's magazines were considered to be media that prompt higher tolerance to potentially offensive advertisements. Finally, it was found that levels of advertising offensiveness had an effect on purchase intentions.     

老字号品牌广告采用流行文化对品牌真实性的影响——一个有中介的调节模型

真实性是中华老字号品牌特有的优势。在当前激烈的市场竞争环境下，老字号品牌更新变得尤为重要。在老字号品牌更新过程当中，更新策略是否会对老字号品牌固有的优势与属性造成负面影响？这一问题在理论与实际上均具有深入探讨的迫切性。本章依托组织合法性理论，探讨了老字号品牌采用流行文化的广告中，消费者感知文化差异对品牌真实性的影响机制。实证研究以三个老字号品牌广告为样本，共搜集到631份有效数据。数据分析结果显示，在老字号结合流行文化元素的品牌广告中，消费者感知传统文化与流行文化的差异性对广告合法性与品牌真实性均有显著负向影响；广告合法性在消费者感知广告中文化差异与品牌真实性之间发挥部分中介作用；而消费者流行文化卷入度显著降低了广告中感知文化差异对广告合法性的影响，以及流行文化卷入度在广告中感知文化差异与品牌真实性之间的调节效应完全通过广告合法性起作用。该研究结果丰富了品牌真实性与品牌合法性领域相关文献，具有一定的理论与实践意义。     

Thinking and feeling on the World Wide Web: the impact of product type and time on World Wide Web advertising effectiveness

This article focuses on the effectiveness of banner advertisements.Drawing from theory on functional versus expressive products and wear in versus wear out it argues that product type and time are important factors in World Wide Web (WWW) advertising. The results from a large empirical study are reported and show that responses to banner advertisements differ between functional and expressive products and over time. Functional product banner advertisements have higher initial click-throughs that quickly deteriorate and they have no effect through advertisement impressions. Expressive products need time to wear in as both click-through rates and positive brand attitudes from advertisement impressions increase with repeated exposures. These differences in consumer response are conceptualized as thinking and feeling on the WWW,thereby providing important implications for advertisers.     

Associative and dissociative comparative advertising strategies in broadening brand positioning

When marketplace dynamics prompt a familiar brand to change its positioning, consumers often meet such attempts with resistance. This research demonstrates how familiar brands can incorporate new attribute information into the brand's position via comparative advertising in order to broaden the brand's marketplace positioning. Study 1 shows how the use and nature of comparative advertising affects the ability of a familiar brand to broaden its positioning. Studies 2a and 2b demonstrate that a comparative advertising strategy that incorporates a specific sequencing of dissociative and associative comparative advertisements best broadens brand positioning.     

Adapted or standardized copy: Is non-cultural English the answer?

International advertisers often wonder whether to adapt their copy to each country they operate in or to globally standardize their message, especially in non-Anglophone markets. While the current business lingua franca is English, how easily can it be introduced into advertising without alienating consumers, and would a simpler English message work better? Does the culture of a brand also influence the impact of English use in non-Anglophone markets? This research examines the interaction between language choice and brand culture in a non-Anglophone market. Specifically, the studies review the value of Globish, a non-cultural form of English. The results suggest that using standardized English copy has relevance in non-Anglophone countries for global brands, but that Globish can also be useful for local brands seeking to upgrade their value in a local market. Globish is shown to be an interesting alternative option in adapting or standardizing advertising strategies. Managerial implications close the paper.     

Fast food,ads, and taste in a Russian child’s mind

Research demonstrates that brands can influence children’s food preferences and potentially contribute to unhealthy consumption patterns. This article extends this line of research by investigating the complex and interacting effects of food brand marketing on experienced taste. The empirical field in a remote Russian town enabled the assessment of branding effects when entering a newly established market. Examining the combination of various advertisement features with emotional brand elicitation, we derive hypotheses about the interplay of brands and advertisement components linked to the perceived taste of a fast food meal. In Novosibirsk, Russia, 778 children and adolescents aged 10–18 years were exposed to fast food advertisements with real and imaginary brand logos and varying advertising claims. The advertisements consisted of a warning, an exaggerated credence claim, or both. A subsequently offered fast food meal—a portion of French fries—was experimentally varied and prepared to be either healthier but less tasty and unsalted, or less healthy but tastier and salted. The findings verify strong and positive brand effects on children’s taste satisfaction. Warnings in advertisements “worked” only for novel fast food brands by negatively affecting taste satisfaction, but increased taste satisfaction when applied in advertisements for established brands. Single credence claims did not improve the taste experience, but counteracted the negative effects of warnings for novel brands. Finally, the established brand influenced taste satisfaction positively when the fries were saltier. The findings reveal various opportunities for fast food marketing to artificially create taste satisfaction for potentially unhealthy food. Public health strategies that focus on advertising claim restrictions should be reconsidered in the context of possible evasion strategies of the food industry and counter‐effects of warnings among strong fast food brands.     

Does manufacturer advertising suppress or stimulate retail price promotions? Analytical model and empirical analysis

Does manufacturer advertising for a brand stimulate or suppress retail price promotions? This study addresses this controversial issue. The authors develop an analytical model that shows that the relationship between manufacturer advertising and retail price promotion depends on the role of advertising. If advertising differentiates brands and suppresses consumer response to retail promotion, then the relationship is negative. But, if advertising is informative enough to increase consumer response to retail promotions, then the relationship is positive. A follow-up empirical analysis shows a strong positive relationship between category advertising expenditure and size of retail price discount, and between advertising and discount frequency. The finding supports the informative role of advertising in the context of retail price promotions. The implications of these findings and directions for future research are discussed.     

Is television advertising being placed to reach product users?

Several textbooks, journal articles, and advertising practitioners indicate that the advertising for many products should be directed toward the heavy users of the product category. Other works suggest that advertising should be directed at current users of a brand to retain them or to users of competitive brands in an effort to attract them. The purpose of this article is to compare these directions for how advertising should be placed with data showing how advertising is being placed. The comparison is made using supermarket scanner panel data and household advertising exposure data. Examples are also provided to indicate the extent to which advertising could be targeted to heavy users of the product category and users of a brand, given the actual viewing and consumption patterns. Several implications for the placement of advertising are discussed.     

Goodwill and dynamic advertising strategies

In this paper, we empirically analyze weekly advertising policies of manufacturing firms in consumer goods markets. We assume firms engage in persuasive advertising, thus policies of firms affect the goodwill of a brand. We introduce a demand and a goodwill production function. A simple transformation of the demand function allows us to identify not only the demand parameters but also the parameters of the goodwill production function. We reconstruct the unobserved goodwill levels using these parameters and past advertising levels. We restrict our attention to Markov Perfect Equilibrium (MPE) strategies which are functions of payoff relevant state variables. Without imposing further restrictions on the dynamic competitive environment, we investigate the relationship between observed advertising strategies—which are assumed to be MPE—and payoff relevant state variables by means of several reduced form specifications. The most important determinant of advertising intensity turns out to be goodwill. We demonstrate that controlling for an advertising campaign significantly improves the explanatory power of the model. JEL Classification L13 . C73 . M30 . M37 I would like to thank Volkswagen Stiftung for the generous financial support which made this research possible.     

围绕本质“立法” 坚持权威“执法”——浅析英国误导性广告的立法与司法实践

作为世界上广告监管最为规范的国家,英国的广告监管经验非常值得借鉴。在英国,广告监管主要通过行业自律机构实施,包括对误导性广告的监管。本文通过对英国误导性广告的现状、＂立法＂和＂执法＂等进行初步的分析和探讨,希望能对中国误导性广告监管有所借鉴。