Understanding Programmatic Creative: The Role of AI

In this article, we expand the concept of programmatic advertising to include programmatic creative as a vital component. While artificial intelligence (AI) has already automated the media buying process, the advertising creative process still requires extensive human efforts. Such discrepancy calls for AI to transform the advertising creative process. We provide a framework for understanding and investigating programmatic creative by drawing evidence from the advertising industry in China. We specifically discuss how big data and machine learning algorithms underpin programmatic advertising. We argue that AI will integrate programmatic buying and programmatic creative in the future. We also discuss the technological, regulatory, and legal challenges faced by programmatic creative. We argue that new theories and methods are needed to conduct research in this area and provide guidance for the advertising industry.     

Social Consumer Neuroscience: Neurophysiological Measures of Advertising Effectiveness in a Social Context

The application of neurophysiological methods to study the effects of advertising on consumer purchase behavior has seen an enormous growth in recent years. However, little is known about the role social settings have on shaping the human brain during the processing of advertising stimuli. To address this issue, we first review previous key findings of neuroscience research on advertising effectiveness. Next, we discuss traditional advertising research into the effects social context has on the way consumers experience advertising messages and explain why marketers, who aim to predict advertising effectiveness, should place participants in social settings, in addition to the traditional ways of studying consumer brain responses to advertising in social isolation. This article contributes to the literature by offering advertising researchers a series of research agendas on the key indicators of advertising effectiveness (attention, emotion, memory, and preference). It aims to improve understanding of the impact social context has on consumers' neurophysiological responses to advertising messages.     

Contextual and Competitive Interference: Inhibition or Facilitation?

Existing literature has found two sources of advertising interference, competitive and contextual, that decrease the effectiveness of an ad in a cluttered environment. However, to date, the negative impact of competitive and contextual interference has been examined independently. This research explores advertising effectiveness when these sources exist concurrently. Contrary to the supposition concerning the additive effects of both sources of interference when simultaneously present, our findings indicate that viewing ads for the same product category with similar executional elements leads to the dissipation of interference effects (Study 1). Consistent with the process rationale, when a product-brand cue (versus a picture cue) is provided, this novel effect disappears (Study 2). The implications of these findings for advertising are highlighted in the discussion section.     

Positive Mood and Susceptibility to False Advertising

This paper examines the impact of mood on consumers' implicit and explicit responses to false advertising. In our first experiment, we find that those consumers in a positive (versus a negative or neutral) mood state are more likely to notice the false information in the advertising, but paradoxically, are also likely to develop positive feelings toward the brand. In that experiment, we used both a hedonic brand (Disney) and a hedonic/emotional ad (autobiographical). In our second experiment, we extend the ad stimulus context beyond Disney to Wendy's to more readily facilitate autobiographical versus informational manipulations. We find that, indeed, the hedonic advertising execution (autobiographical vis-à-vis informational) is associated with more elaborate processing (but only for those in a positive mood). The observed positive affect transfer continued, however, despite the greater detection of the false information in the positive mood condition. We propose that the negative feelings toward the ad associated with detecting the false information are momentary and are replaced by positive feelings toward the brand that are engendered by positive mood and the advertising, as suggested by the synapse model of memory. Our third experiment varies the timing of our measures to investigate this proposition and finds that timing does matter. We conclude with a discussion of the implications of the findings for research on mood, deceptive advertising, and implicit versus explicit effects of advertising response.     

If Advertising Won't Die,What Will It Be? Toward a Working Definition of Advertising

Answering recent calls for a new definition of advertising, we identify three dynamics—(new) media and formats, (new) “consumer” behaviors, and extended effects of advertising—that drive the evolution of advertising. Based on these, and a survey of advertising academics and professionals, we formulate an updated working definition of advertising as “brand-initiated communication intent on impacting people.” We also test and validate this definition and the three dynamics in a content analysis of recently published advertising research (2010 to 2015). In doing so, we hope to contribute to a more diverse and contemporary development of advertising research.     

A Primer on Using Behavioral Data for Testing Theories in Advertising Research

Interactions with and between customers in digital, social, and mobile environments are commonly recorded, producing behavioral data that have the potential to advance advertising research. This article provides an accessible guide on how to leverage such data for advertising researchers who may have thus far relied mostly on lab experiment or survey data. Specifically, we suggest potential sources for behavioral data and present a process for analyzing and interpreting behavioral data. Each step of the process is discussed: exploring, understanding and preparing data; specifying and estimating models; and interpreting and presenting the results. Some fundamental issues with using multiple regression to analyze such data are covered, including standardization, outliers, transformations, multicollinearity, and the omitted variable bias. We also discuss issues that are especially problematic with using behavioral data in advertising research, including endogeneity, count data, data with many zeros, and grouped data. More advanced versions of regression that address these issues are surveyed, including instrumental variables, propensity scoring, generalized linear models, and mixed models. General advice for thinking about behavioral data is provided.     

Methodological Guidelines for Advertising Research

In this article, highly experienced advertising academics and advertising research consultants John R. Rossiter and Larry Percy present and discuss what they believe to be the seven most important methodological guidelines that need to be implemented to improve the practice of advertising research. Their focus is on methodology, defined as first choosing a suitable theoretical framework to guide the research study and then identifying the advertising responses that need to be studied. Measurement of those responses is covered elsewhere in this special issue in the article by Bergkvist and Langner. Most of the frameworks are derived from the authors' own published work, although other frameworks are noted where appropriate.     

Think Outside the Ad: Can Advertising Creativity Benefit More Than the Advertiser?

This article adds to the literature on advertising creativity as well as the growing body of research on the unintended effects of advertising. In three experimental studies we “think outside the ad” and test whether there could be unintended, positive effects of advertising creativity. The results show advertising creativity to have a positive influence on consumers’ own creativity as well as their perceptions of media vehicle value. The effects are mediated by processing and perceived creativity. In discussing the results we encourage advertisers not only to take responsibility for avoiding unintended negative effects on consumers but also to explore and factor in potential positive effects that benefit consumers.     

A Practical Guide to Experimental Advertising Research

Experiments are conducted to help establish cause-and-effect relationships, and they can be powerful tools for doing so. We review fundamental concepts for conducting experimental advertising research. Good experimental research involves careful consideration of independent and dependent variables, and what they are supposed to represent. To this end, we review threats to construct validity as well as offer some suggestions on how to think about external and ecological validity in ad research. We review three quasi-experimental research designs and three simple, randomized experimental designs, along with more complex factorial design experiments. Finally, we discuss ethical considerations and the crucial role researchers play in maintaining research integrity.     

Research and Publishing in the Journal of Advertising: Making Theory Relevant

As the latest contributor in this invited article series, I offer my perspective on conducting and publishing advertising research and navigating the review process. I also discuss the importance of the relevance of research to advertising practice, with a particular emphasis on the role that theory plays in making research relevant. In addition, I offer a few general observations about future advertising research.     

Opportunities for and Pitfalls of Using Big Data in Advertising Research

This editorial introduces the special section on big data. We define big data by examining how it is, or will be, created in advertising environments. We propose a conceptual framework for understanding the different types of digital advertising touch points that create big data, and use the framework for identifying research opportunities. We discuss the types of research questions that big data can inform, including developing and testing theories, identifying insights, and optimizing the delivery of messages. New methods that advertisers will need to use big data are identified. Recommendations are provided for how to think about and approach big data. Using the framework, we identify specific opportunities for advertising researchers to use big data. We also discuss pitfalls in using big data.     

Creating an effective code-switched ad for monolinguals: the influence of brand origin and foreign language familiarity

This study investigates the influence of brand origin and foreign language familiarity in code-switched (CS) ad effectiveness for monolingual consumers. CS ads refer to ads containing foreign words or phrases in an advertising copy (e.g., headline and slogan), resulting in a mixture of native and foreign languages. In this research, we conducted a pilot study to show the increasing trend of using code-switching in ads, regardless of whether the brands are local or foreign, in a monolingual market. We further examine if the effectiveness of CS ads is contingent on the brand origin among monolinguals. Study 1 showed that non-CS ads were perceived more favorably than CS ads for advertising a local brand. However, not all of the CS ads were perceived more favorably than non-CS ads when a foreign brand was advertized. The results of Study 2 showed that when a foreign brand was advertized, CS ads using a high-exposure foreign language were evaluated more favorably than CS ads using a low-exposure foreign language. Foreign language familiarity played a mediating role in the observed effects. We provide evidence that the research findings on CS ads among bilinguals cannot be applied to monolinguals. We discuss implications for international marketing and suggest advertising strategies for practitioners.     

Consumer Skepticism of Claims in Food Ads vs. on Food Labels: An Exploration of Differences and Antecedents

Considerable evidence shows that consumers are skeptical of advertising, that is, have a tendency to doubt the truth of advertising claims. The main focus of our paper is to explore, in the context of food products, whether this typically high level of skepticism is also exhibited for product labels. In addition, we look at consumer skepticism associated with health claims in food ads and labels as well as with the Nutrition Facts Panel on food packages. Finally, we examine some individual difference factors that might influence consumer skepticism. We report the results of a large‐scale survey designed to explore these issues, and we discuss the implications of our findings for public policy and future research.     

Advertising as Unfavorable Self-Presentation: The Dirty Laundry Effect

Identity appeals—marketing communications that invoke one of the target market's identities—are typically well liked by consumers. In contrast with this notion, this research examines a situation when consumers respond negatively to identity appeals in advertising. Through three studies, we find that identity appeals fail when consumers judge an identity-congruent ad as portraying information about them that they would rather not have widely broadcast. In these cases, self-presentation concerns arise, leading to ad dislike. Thus, although identity-congruent ads resonate with consumers, such ads may lead to negative responses if consumers believe the ad airs their “dirty laundry.” We discuss implications for targeted advertising and identity marketing strategies.     

Understanding programmatic TV advertising

ABSTRACT

Television is undergoing tremendous technological developments, which will enable marketers to direct commercial messages to more specific audiences at the individual and/or household level. Traditional ways of buying TV advertising are being challenged by the programmatic approach, which originated with search and display ads, and uses data and technology and real-time auctions to automate transactions between buyers and sellers. We discuss the changes to TV that enable the rise of programmatic models and propose that its future success depends on the coordination and availability of three factors, abbreviated DAD: distribution, ad inventory and data. We also elaborate on the effects of media context and how the TV program environment matters for advertising effectiveness. Finally, we discuss the future of TV advertising and related research needs.     

Corporate crisis advertising: A framework examining the use and effects of corporate advertising before and after crises

While corporate advertising has been widely studied as a promotional tool, few studies have examined how it can be used in a corporate crisis situation. In 2013, Kim proposed a conceptual framework for examining stakeholders’ evaluation of pre-crisis corporate advertising, using the inoculation and reactance theory. The framework, published in Journal of Marketing Communications, suggested that pre-crisis advertising can increase audience resistance towards negative news of an organization and decrease audience resistance towards future corporate advertisements from the organization. The present study expands on Kim’s work to develop the corporate crisis advertising (CCA) framework. In addition to the inoculation and reactance effects discussed in Kim’s model, CCA aims to discuss the effects of corporate advertising on improving organization’s prior reputation based on halo effect, and how post-crisis advertising messages can be evaluated based on crisis theories. Our proposed framework provides a comprehensive view of the use of corporate advertising both before and after a crisis and is useful for organizations to understand the impact of corporate advertising on stakeholders’ evaluation of the organization in a crisis situation. Potential applications of CCA are discussed and directions for future research suggested.     

Brands on the Brain: Neuro-Images of Advertising

Neuroscience is opening a new chapter of understanding in many fields. One such is how advertising works. For the first time we can directly 'see' some effects of advertisements on the brain's activity. This article reports two small-scale experiments into the differential effects of advertising's rational and emotional components. Advertising has long been seen as providing reasons to buy, however subtle. In academic research at least, the importance of emotion has often been downplayed. The preliminary experiment reported here shows how emotional ads are more likely to be remembered. The second experiment uses brain imaging to investigate the part of the brain which responds to emotionally-engaging ('affective') and reason-engaging ('cognitive') advertising stimuli. These are very early days in using brain-imaging techniques and these experiments are very exploratory. However, as the three Commentaries by Simon Broadbent, Thomas O'Guinn and Larry Percy suggest, along with other work, they may point towards a revolution in advertising research.     

Direct effect of advertising spending on firm value: Moderating role of financial analyst coverage

Previous research distinguishes between direct and indirect effects of advertising spending on firm value. This research focuses on the direct effect of advertising based on the spillover and signaling effect of advertising. Both effects are the result of increased public information flow about the firm created by advertising. Another source of public information flow about firms is information produced by financial analysts. We hypothesize that the direct effect of advertising on firm value will be stronger for firms not covered by financial analysts than for those that are covered because investors may rely on information flow from financial analysts for covered firms and rely on information flow from advertising in the absence of analyst coverage. Using financial and accounting databases for publicly traded firms for a period from 1975 to 2015, we test this hypothesis and find empirical evidence for the moderating role of analyst coverage in the relationship between advertising spending and firm value.     

The use of sampling methods in advertising research: a gap between theory and practice

In this research note, we reflect critically on the use of sampling techniques in advertising research. Our review of 1028 studies published between 2008 and 2016 in the four leading advertising journals shows that while current academic literature advocates probability sampling procedures, their actual usage is quite scarce. Most studies either lack information on the sampling method used, or engage in non-probability sampling without making adjustments to compensate for unequal selection probabilities, non-coverage, and sampling fluctuations. Based on our results, we call on researchers to revisit the fundamental aspects of sampling to increase their research results’ rigour and relevance.     

Targeting college students on Facebook? How to stop wasting your money

While Facebook usage has seen explosive growth, scant research has explored returns on advertising dollars marketers invest in this emerging medium. Our two-stage study of 18- to 25-year-old college students suggests that many of the advertising dollars consumer goods firms spend on Facebook are likely wasted. This study highlights that, in addition to staying in touch with friends and relatives, Facebook users are primarily motivated by three desires: (1) to voyeuristically peer into others’ lives, (2) to create a distinctive identity for themselves, and (3) to act on their inner narcissistic tendencies. These motivations also make them poor prospects for advertisers, as users seem disinterested in Facebook ads and disengaged from marketers’ attempts to build brands. Herein, we discuss challenges for marketers, as well as opportunities for building brands and driving sales via Facebook.