Commonalities in the Reasons for Switching Advertising Agencies: Corroboratory Evidence from New Zealand

Our replication study in New Zealand of failed advertising agency-client relationships provides findings to support previous UK and US research that a common set of reasons appears to exist, both between countries and over time, to explain why breakups occur. Advertisers responsible for over half of advertising account switches in New Zealand between 1993 and 1994 gave identical rankings to their counterparts in the UK and USA on the general factors explaining breakups, and also similar ratings on the relative importance of the thirty-five detailed variables associated with failure.     

Cultural differences affect interactive television advertising

Comparing results from the UK and the USA, this study shows that even subtle cultural differences between two very similar countries can affect new forms of advertising such as interactive television (iTV) commercials. The UK pioneered the mainstream use of iTV advertising, and now it is a mainstream advertising option in the USA on cable networks and online TV networks like Hulu. This study tests whether effective iTV-ad execution factors identified by a previous study of 500 UK iTV campaigns are similarly effective in the USA based on data from 257 iTV campaigns run on the experimental Wink platform between 1998 and 2004. It finds that specific cultural differences make iTV advertising in the USA unique, but also identifies potential globally effective universals for iTV ads. The results of this study allow advertisers to predict the most effective alternative ideas for iTV advertising campaigns run in the USA and potentially in other countries around the world.     

Promoting sustainability through social marketing: examples from New Zealand

This paper investigates the social marketing of sustainability in New Zealand and examines the usefulness of advertising campaigns to enlist and empower people, as both consumers and citizens, towards environmental care. It draws on discussions about ‘citizen‐consumer subjectivities’ and the model of the ‘political economic person’, which link sustainability and consumption through asserting people’s capacities as reflecting citizens. Printed advertisements by local and national government agencies about air pollution, fuel dependency and energy consumption are analysed to see whether advertising campaigns can operate on multiple levels for a range of audiences – desirable for broadening understanding of sustainable consumption and dealing with the complexity and experiential aspects of ‘doing’ sustainability. The advertisements analysed have an authoritative dimension that downplays this complexity and variability. The paper concludes that these advertisements do not go far enough to involve individuals in processes of co‐producing knowledge about sustainability, and to vest them with expertise in exercising sustainability in their daily lives. The implications are that advertising campaigns that engage with the complexity surrounding consumption in people’s modern lives, and with variability in meanings of sustainability, have the possibility of inciting citizen‐consumer political subjectivities.     

A longitudinal study of the professions' attitudes towards competition & advertising

The attitudes towards competition and advertising of the members of five professions in New Zealand were monitored in three surveys carried out in 1985, 1988 and 1994. This paper reports on the changes in attitudes that occurred over this nine-year period, noting marked trends in all the professions towards an acceptance of a competitive orientation and advertising in particular. A partial exception to the general trend favouring competition has been the attitudes towards matters directly related to money (for example, fees and credit facilities), where there was markedly less enthusiasm for competition. Attitudes towards advertising by professional practices have relaxed sufficiently to question whether advertising needs to be a matter of concern to the professions.     

Has Advertising Lost Its Meaning? Views of UK and US Millennials

The findings of a study of Millennials in USA and the UK—an increasingly important and digitally savvy segment of consumers—reveal that they see advertising as Companies promoting a product or service to people through media. Their perception is simple and all-encompassing with no evidence that they distinguish between different types of media or different types of communication. Some variation between the views of Millennials in the two countries is also identified, although this is less than expected. The findings contribute to an important and continuing debate among academics and marketing practitioners over how advertising should be defined in today’s multichannel environment. The findings are also compared with other recent definitions of advertising, and their implications are discussed.     

An Analysis of Consumer Complaints about Social Marketing Advertisements in Australia and New Zealand

While social marketers are rarely targeted in discussions of the ethics of advertising, we are increasingly becoming aware of the importance of ensuring that social marketing messages are developed and conveyed in an ethical fashion. The article reviews complaints made by members of the general public in Australia and New Zealand to the advertising regulatory bodies in those two countries for the five years 2000–2004; examining the number, type, and nature of these complaints – including the categories of advertising, and the types of appeals, which generate complaints from the general public in both countries. We find that, as for commercial advertising, there is a need for further research to explore “community standards” in relation to social marketing messages; and that there is a clear need for social marketers to consider consumer attitudes towards advertising when developing communication strategies and messages.     

Does advertising grow markets?

Many observers believe advertising increases market size (with the implication that fewer people would smoke or drink alcohol or buy cars if there were no advertising for those products), and that it works by creating desires. This paper examines the historical evidence and recent case histories of successful marketing campaigns from the UK’s IPA Effectiveness Awards. It turns out that very few advertisers have tried to increase the size of their market or claim to have done so. In the few cases that describe an increase in market size, we see consumers switching from one type of product to another, without increasing their total category consumption. No case claims to have created a new desire. The inference is that banning or restricting advertising may be an ineffective instrument of social policy.     

Comments

Standardisation of international advertising campaigns and relaxed advertising regulations have led to Australian consumers being exposed to higher levels of foreign-produced advertising. The study described here assessed the impact on Australian consumers of foreign spokespersons in TV advertisements using a ‘voice-over’ technique. This technique was assessed with respect to the following characteristics: expertise, trustworthiness, professionalism, likeability, dynamism, similarity to the audience, and their overall attitude towards the advertisement Subjects evaluated either American, British or Australian spokespersons. American and British spokespersons were rated less favourably by Australian audiences than Australian spokespersons across a range of characteristics, but they did not report a less favourable overall attitude towards advertisements that used an American or British spokesperson compared to those with an Australian spokesperson. Hence, the results tend to support the trend towards standardised advertising campaigns. However, since award-winning advertisements were used, other factors that may influence overall attitude, such as message content and creative execution, may have reduced the impact of the negative source evaluations in this case. Further research is required. Yet, in the light of more favourable evaluations of Australian spokespersons, overseas firms promoting products in Australia with Voice-over' advertisements may consider using an Australian spokesperson.     

Some Evidence on the Early Price Effects of Attorney Advertising in the USA

When the US Supreme Court gave attorneys in the US the right to advertise their fees for routine legal services, the Court assumed that such fees would fall as a result of attorney advertising. According to economic theory, however, it is not clear what impact seller advertising will have on market prices. A major research effort designed to measure the price effects of attorney advertising in the USA began one year after the Bates decision. Some of the major findings of that study are presented in this paper. While none of the study's results so far indicates that the price effects of attorney advertising in the short run are likely to be substantial, the results suggest that the level of routine legal service fees may fall slightly or remain unchanged in constant dollar terms as a result of attorneys' use of advertising to promote their services and prices.     

Food Miles: Starving the Poor?

Food miles measure the distance food travels to reach consumers’ plates. Although substituting local food for imported produce will not necessarily reduce greenhouse gas (GHG) emissions, the food miles movement is widely supported by consumers and import‐competing producers, especially in some parts of Western Europe. We investigate the economic implications of food miles preference changes in the UK, France and Germany on other nations using an economy‐wide model. Among the regions we consider, New Zealand is the most distant from Western Europe and Madagascar and Malawi export the most agro‐food products relative to GDP, so food miles movements have the largest impacts on these regions. When there is a linear relationship between distance and preference changes, food miles campaigns decrease welfare in New Zealand, Madagascar and Malawi by 0.30, 0.12 and 0.28 per cent, respectively. When there is a preference shift away from imported food unrelated to distance, proportional welfare losses in the three countries are, respectively, 0.11, 0.08 and 0.24 per cent. With the exception of New Zealand, these findings indicate that some of the world’s poorest nations will suffer the most from European food miles lobbying. We conclude that food miles campaigns will increase global inequality without necessarily improving environmental outcomes.     

Can Social Media Campaigns Backfire? Exploring Consumers' Attitudes and Word-of-Mouth Toward Four Social Media Campaigns and Its Implications on Consumer-Campaign Identification

In response to the unprecedented growth of social media, companies are continuously creating unique social media campaigns encouraging customers to share their advertising messages. However, many of these social campaigns end up backfiring. The purpose of this study is to examine consumers' preferences toward 4 social media campaigns and to investigate the impact of positive and negative word-of-mouth and social value on consumer-campaign identification. Using a sample of 525 respondents in Australia, the results show social media campaigns that contain negative messages are more likely to receive negative word-of-mouth while partnering with non-profit organizations may help generate positive word-of-mouth. This study will assist marketing managers to better understand the consumers' perceptions on recent social media campaigns in Australia.     

An empirical examination of public attitudes towards advertising in a transitional economy

This paper examines public attitudes towards advertising within the context of transition in central and eastern Europe. Drawing on a consumer survey conducted in three cities within Romania, the study conceptualises Pollay and Mittal’s (1993) model of beliefs and attitudes towards advertising. This study introduces a novel differentiation between image and the social integration role of advertising, extending in this way the concept of the personal uses of advertising. It highlights variations in public opinion towards advertising between socio-cultural areas in Romania. Attitudes towards the institution of advertising, attitude–instrument, product information and hedonic/pleasure have a positive effect on general attitude to advertising as expected. Consumers who perceive an informational and entertaining value of advertising, those holding positive attitudes towards advertising as an institution in a free market economy and the instruments used to further it, are more likely to hold positive general attitudes towards advertising. The role of advertising exhibits a positive effect on general attitude. Image has a surprisingly negative effect on general attitude towards advertising, which contrasts with expectations based upon developed countries. Finally, the managerial implications are discussed.     

International Advertising Expenditure Trends

From the early 1990s, marketing literature began to feature a number of articles suggesting that integrated marketing communications (IMC) would have a major impact on advertising as we know it, and on client—advertising agency relationships. A counter-view appeared at that time in the literature suggesting that IMC was nothing more than co-ordinated promotion and that many companies had been doing ‘it’ for some considerable time. More recent articles have lamented that the concept has not been embraced by marketing communications specialists and that implementation has proven difficult. A common definition of IMC—and how it differs from traditional advertising, both in philosophy and in implementation—has not evolved despite considerable academic discussion on the subject. This paper reviews the most comprehensive definitions of IMC and the competing paradigms—‘new’ versus ‘nothing new’—and summarises the results of a recent two-part study that compares the perceptions of clients with those of senior ad agency personnel in New Zealand regarding how and in what ways IMC is developing there.     

Developmental antecedents to children’s responses to online advertising

Many critics have raised concerns about online advertising directed to children. This study investigated the role of several antecedent variables that may impact children’s attitudinal and behavioural responses to online advertising. Specifically, online ad scepticism, family communication patterns, time spent on the internet, and perceived internet competency were examined as factors that may impact children’s online advertising attitudes and behaviours. A survey conducted with a dyad sample of 381 parents-preteens in South Korea revealed that children with high scepticism towards online advertising, who spent less time using the internet and who perceived lower levels of confidence about their internet skills were more likely to have a negative attitude towards online advertising and less likely to disclose personal information to online marketers. However, the relationship between family communication and children’s responses to online advertising found in this study was inconsistent with the previous empirical findings. Implications of findings are discussed and directions for future research suggested.     

Who A dvertises Prices? A Firm Level Study Based on Survey Data

Recent years have seen a growing body of literature devoted to the analysis of price advertising. Much of this work argues that price advertising leads to lower prices and is likely to be welfare improving. The questions of how much price advertising takes place and which firms are more likely to include price information in advertising have been somewhat neglected. This paper uses a unique new data set of UK company advertising to answer these questions. The evidence presented suggests that only a small proportion of firms include price information in any of their advertisements. Price information tends to be included in a higher percentage of the advertisements of distribution companies and of those which face more than ten competitors. In addition, the importance of price as a form of competition is a factor in determining the inclusion of price information, but only where the firm aims most of its advertisements towards final consumers.     

Social relationships and social anxiety appeals in direct-to-consumer advertising

The use of social relationships as a promotional tool in direct-to-consumer (DTC) advertising has received limited attention despite relational impacts on illnesses and empirical evidence supporting social relationships’ positive influence with some patients. This content analysis provides insights into social relationship appeals’ use in DTC magazine ads for each drug-class category. Further, the current study introduces the concept of social anxiety appeals into the DTC advertising literature, which had previously focused more on fear appeals, such as the fear of pain. Social relationships appeared in 42.5% of the 421 DTC ads included in the sample. Social anxiety appeals appeared in 28.5% of ads with social relationships. Types of social relationships depicted (nonromantic, romantic, non-human pets or cartoon characters, and family) vary across drug-class categories. The current study affirms that DTC advertisers frequently appeal to the theoretical importance of relationships as an aid to improved health. It also raises ethical issues when neither the implied improvements in relationships nor decreased social anxiety are direct consequences of prescribed use of the advertised pharmaceutical.