Advertising and National Consumption: A Path Analytic Re-Examination of the Galbraithian Argument

Abstract

A relatively new analytic technique, PATHEVAL, is used to re-examine an old issue, the relationship between advertising and national consumption. Using cross-national annual data collected on 53 nations, the authors find little evidence for Galbraith's view of advertising as a most persuasive force in altering people's spending and savings habits. Four variables are included in the path analytic model: national income, energy use — a proxy for industrial development, disposable income, private final consumption, and national advertising expenditures. In the Galbraithian argument, disposable income and industrial development predict to advertising, which leads to consumption. The contentions of Galbraith's critics are supported by the analysis: income appears to lead to consumption, which in turn, leads to advertising.     

Full Service Agencies vs. A la Carte

Abstract

This article examines the new phenomenon of à la carte advertising in which an advertiser acts as coordinator and purchases various services from independent operations. A la carte advertising is mainly motivated by a desire on the part of cost conscious advertisers to reduce costs of advertising. In the long run this move may be more costly to the advertiser specially in terms of reduced profitability derived from less effective advertising. Full-service agencies make the most sense for most advertisers and can even provide effective service on an à la carte or modular basis if so desired.     

Explanation,Correlations and Causal Relations

Abstract

The purpose of this article is to help advertising planners evaluate audiences as they relate to cable television and new technologies. Fundamental assumptions made about television audiences and advertisers are examined with regard to new services. The article reviews and organizes the recent empirical studies concerning the audiences of new technologies. It presents a model which analyzes audience similarities and differences between new and conventional media. Also considered are directions for planning, research and the immediate future of cable advertising.     

Perceptions of Offensive Advertising Elements: A China–U.S. Comparison

ABSTRACT

As China continues to rapidly expand and further open itself to market forces, the People's Republic arouses significant interest as a new mega-market. Consequently, the influx of new business opportunities and advertising has resulted in Chinese consumers increasingly exposed to potentially offensive advertising. While some products and images may seem acceptable when advertised in the West, there are some that may offend Chinese cultural sensitivities. The purpose of this study is to better understand similarities and differences that exist between American and Chinese perceptions surrounding offensive advertising. The results highlight a number of statistical cultural differences that have business implications for international marketers.     

Some Economic Issues and Policy Implications of Studies on the Competitive Effects of Advertising Expenditures

Abstract

The purpose of this article is to examine some of the litersture in Economics that concerns itself with the economics of advertising and to present some of the public policy implications of the results of these studies.

It is found that it is unlikely that advertising expenditures are subject to increasing returns to scale, thus probably do not lead to an increased concentration of industry for this reason.

A study is presented that deals with competition by advertising expenditures and product differentiation in the U.S. cigarette industry. It is found that advertising expenditures. during the 1956–68 period, were not effective in obtaining sales from competitors, although they may have had the affect of inducing new customers to buy the product. The effect of anti-smoking commercials is examined, and it is found that. although they may have had some effect on cigarette smoking. it is doubtful that they provide the impetus for the decreases in advertising expenditures in this particular industry.     

The Death of Advertising

Abstract

Mass media advertising as we know it today is on its deathbed, and its prognosis is poor. Advertising agencies are restructuring to accommodate a harsher advertising climate, agency income is flat, agency employees are being laid off, direct marketing is stealing business from traditional advertising, and the growth of sales promotion and integrated marketing communications both come at the expense of traditional advertising. The reason for advertising's impending demise is the advent of new technologies that have resulted in the fragmentation of media and markets, and the empowerment of consumers. In the place of traditional mass media advertising, a new communications environment is developing around an evolving network of new media, which is high capacity, interactive and multimedia. The result is a new era of producer-consumer interaction. Because of the speed of technological innovation, the new media advertising paradigm that results will attain prominence faster than did mass media advertising. The new paradigm of 21st Century Marketing and advertising will be dominant by 2010 and should last well into the middle of the century. If they hope to survive, university advertising departments will have about ten years to 1) think of themselves much more broadly, and 2) transform themselves into departments specializing in information transfer in the new media environment.     

Western Concepts,Russian Perspectives: Meanings of Advertising in the Former Soviet Union

Abstract

Western advertising professionals base their interpretations of advertising in the former Soviet Union on a Western model of advertising and neglect Russian perspectives on advertising. Symbolic interactionism suggests that things have different meanings for different people at different times. The author discusses the influence of Russian culture on advertising in the former Soviet Union and the problem of imposing Western concepts. A month-long research study was conducted in Moscow, Russia in May 1991. Interviews with government officials, business and advertising industry professionals, academicians, and students were audiotaped. Findings suggest that advertising in the former Soviet Union is an interaction between social and economic realities and not just a means of uncovering a new marketplace.     

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.     

Pigott,Stanley. OBM/A Celebration: One Hundred and Twenty-Five Years in Advertising. London: Ogilvy,Benson & Mather Limited, 1975

Abstract

This study reports the results of a survey of advertising managers and editors of weekly and daily newspapers and of selected consumer magazines concerning the issue of feature advertising. Feature advertising is defined as paid advertising space that looks like editorial copy in the form of a short feature article. It was posited that this type of advertising might offer a unique challenge to the process of advertising self-discipline among print media. Ad managers and editors differed on a number of points, but agreed that questions pertaining to feature ads should be addressed through media self-discipline.     

An Historical Analysis to Explain the Evolution of Advertising Agency Services

Abstract

Young people interested in careers in advertising often ask: Do advertising agencies offer good career opportunities? What functions do agencies perform, and why? How will agencies evolve in the future? This article traces the evolution of services that advertising agencies perform and identifies major factors that explain such evolution. The reader may wish to perform the same kind of analysis to predict or anticipate future evolution of advertising agencies. The intent is not only to explain or predict changes, but also to exhibit “systems thinking” which is appropriate for the historian.     

Caring for her: the influence of presumed influence on female consumers’ attitudes towards advertising featuring gender-stereotyped portrayals

ABSTRACT

This study investigates how presumed influence on others affects women's evaluations of advertising featuring gender stereotypes. Previous research has largely overlooked the social context of the reactions to gender stereotypes. Addressing that gap, this study draws on the influence of presumed influence model to proposed that female consumers believe that other women are negatively affected by advertising that contains gender-stereotyped portrayals. This perception is hypothesized to influence ad and brand attitudes as consumers ‘punish’ the brand for hurting others. The results of two experimental studies featuring stereotyped and non-stereotyped advertising portrayals indicate that the hypothesis holds for two types of stereotype components (physical characteristics and role behaviour). This new theoretical perspective to the literature on gender stereotypes in advertising, one that helps to explain why many women dislike gender stereotypes in advertising even though those stereotypes often have limited impact on them personally.     

Advertising Regulations in Sub-Saharan Africa

Abstract

This paper examines the status and outlook of advertising regulations in sub-Saharan Africa. It begins with a synoptic overview of the region's advertising industry, which is used as a backdrop. Advertising regulations pertaining to tobacco, alcohol, pharmaceuticals, children, and politics are examined, and seven regulatory forces (consumer protection; growth of service industry; fairness and vulnerable groups; new media technologies; civil rights and privacy; religion, morality, and taste; and nationalism) likely to stimulate advertising regulations in the region are also presented. The paper concludes with implications and directions for future research.     

An Evaluation of the Effectiveness of Internet Advertising Tools

ABSTRACT

This study explores a wide variety of Internet advertising tools. It presents an assessment of the persuasive impact of Internet advertising tools based on the perceptions of senior executives at interactive advertising agencies. The persuasion matrix developed by McGuire (1978) is used as a framework for assessing the impact of Internet advertising tools on the response hierarchy of consumers. Based on this assessment, a series of research propositions are offered in the spirit of propositional inventories for future testing. Finally, included is a discussion that alerts managers to important issues involved in using Internet advertising tools.     

Culture,Perceived Value,and Advertising Acceptance: A Cross-Cultural Study on Mobile Advertising

Abstract

Adverting standardization has been widely discussed since 1990s. Recently, this discussion has been extended to mobile advertising. When it comes to adopt a standardization or localization strategy, it is important that marketers understand how mobile advertising is perceived in different markets. This study examines the impacts of four perceived values of mobile advertising on young Australian and Chinese consumers’ acceptance of mobile advertising. The findings suggest that perceived functional value have the most positive effect on mobile advertising acceptance, followed by credibility and interactivity value. Further analyses reveal that culture moderates the relationships between perceived values and advertising acceptance.     

Advertising Self-Regulation in a Broader Context

Abstract

As the world braces itself for a unified European marketplace, it is critical that we look at the industries likely to be influenced by, and in turn shape, European integration. The advertising industry and its handling of unification are particularly important given that advertising is the voice of the marketplace and a major communications force, shaping cultural norms and values. In order to ensure the free movement of goods, communications about those goods must also move freely. At this time, however, each European country has its own rules and regulations for advertising. One of the major issues facing European advertising as the European Union (EU) comes together is the regulation of cross-border advertising. In 1991 the European Commission issued a call to action for the European advertising industry and almost immediately the industry began work on a trans-border complaints system. Since then the European Advertising Standards Alliance has worked diligently to iron out issues resulting from international advertising disputes. As this article shows, European regulators must determine how advertising will fit into the larger scheme of European law; who will be responsible for controlling advertising; and whether it should be monitored at the national or pan-European level. Certainly the advertising industry is not the only one struggling to determine which controls can remain at the national level and which should be raised to the European rank. But this analysis of how advertising self-regulation fits into the European legal scheme does provide a useful case study of the hurdles ahead. It will be interesting to watch as Europe works to find the proper balance between free trade and national autonomy to control industries.     

Owning and Operating a Destination Management Company

ABSTRACT

Attorneys are the top revenue category for the yellow pages and the yellow pages arc the most popular form of attorney advertising. We studied over 14,000 attorney yellow page ads from three cities including a detailed analysis of all display ads. We compared the advertising strategy used in attorney yellow page ads with the literature on the information consumers desire from attorney ads. This comparison of consumer desires with the actual advertising strategy used by attorneys in the marketplace led to several recommendations for improving attorney yellow page advertising.     

Toward a Model to Enhance Synergy of Out-of-Home Advertising Media Integration Strategies

ABSTRACT

For media planners to combine multiple media across platforms to maximize synergy is a critical challenge within integrated marketing communication. For this study, in-depth interviews were conducted with experienced media specialists in leading agencies to explore how they integrate different out-of-home advertising media platforms in IMC strategies. The feedback of these experts was then used to propose a model of strategies to enhance synergy within out-of-home advertising campaigns. This model is a first of its kind for planning out-of-home advertising media across platforms and bridges a gap in the existing literature on media synergy and out-of-home advertising media strategy.     

An Objective and Task Media Selection Decision Model and Advertising Cost Formula to Determine International Advertising Budgets

Abstract

A company needs to estimate the cost of media plans and advertising upon introducing a new or existing product into an unfamiliar environment such as a new international market. This article presents a conceptual framework for making media decisions and a method for estimating the cost of advertising in international markets. The objective and task method is used to build a working model in order to articulate the necessary steps leading to informed media decisions for budgeting an international advertising campaign. Methods of estimating product demand and a flow model for media selection are also presented.     

From the Guest Editors: About this Journal of Promotion Management “Down Under” Special Issue

Abstract

The Internet is rapidly becoming an accepted communication/promotion medium for all types and sizes of businesses. It is especially significant in reference to the major marketing functions of advertising and sales. Individual Internet users are rapidly moving from the upper income/educational demographic to a more median level. Needs exist for clearer understanding of the terminology developing around this medium, as well as for a system of advertising effectiveness measurement as related to measuring traditional advertising effectiveness.