Advertisers’ perceptions regarding the ethical appropriateness of new advertising formats aimed at minors

Although they are key stakeholders, advertisers’ views on the usage of novel (integrated and/or interactive) advertising toward minors has remained largely unexplored in academic research. This study aims to fill this gap by examining advertising professionals’ opinions about the ethical appropriateness of using novel advertising formats aimed at children and teenagers, how to advance advertising literacy in minors, and their views of practices that are potentially privacy-invading, by means of both a quantitative online survey and qualitative in-depth interviews with Belgian advertising professionals. Results show that advertisers perceive that from 12 years onward, minors are capable to understand novel advertising formats and it is ethically justified to use them. Remarkably, advertisers would inform minors already from the age of 10 years onward about the commercial intention behind new advertising formats. Advertisers have strict opinions about collecting information online from minors. They advocate a combination of laws and self-regulation and governmental and educational campaigns to raise awareness and develop advertising literacy.     

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.     

Any complaints? A review of the framework of self-regulation in the Australian advertising industry

Prior to 1996, the Australian system of advertising self-regulation was regarded as a world model and many Asia-Pacific systems included components adapted from the Australian system. The recent changes to this system, encouraged by the abolition of the media accreditation system, consumer association pressure, criticism from the national advertisers association and the lack of a strong advertising agency presence, present an interesting framework in which to review the foundation concepts of self-regulation in advertising. This paper compares the new code of ethics with its predecessor and an international standard. It examines the performance of the code in terms of the number of complaints upheld and complaint by medium and product type and the voluntary response of advertisers. The findings suggest a weakening in the standard of advertising self-regulation in Australia, with fewer provisions in the Code of Ethics, a significantly fewer number of complaints upheld and no real power of enforcement. Although the case is Australian, it raises universal questions such as the vested interest of advertisers in controlling the process and roles of the consumer association, the media and the advertising agencies in guaranteeing the privilege of self-regulation.     

Advertising in China—Problems and Prospects

Economic reform in China has revived the importance of the market forces and of advertising. Although advertising has a less important role in the Chinese market than in Western countries, it is the fastest growing industry in China. Foreign participation in advertising is limited and contributes about 10 per cent of Chinese advertising revenues. This paper argues that there is ample opportunity for foreign advertisers. Nevertheless, because the Chinese market is different, foreign advertisers need to be patient when attempting to enter the market. The problems and prospects of advertising in China are pinpointed in this paper. Some precautionary measures for the advertisers are also discussed.     

Pretesting TV Commercials: Methods,Measures, and Changing Agency Roles

Abstract

Research directors with the largest 200 agencies and advertising executives with the largest 200 advertisers were surveyed to examine their views on the current state of TV commercial pretesting. One-hundred and one agency researchers and 89 ad executives returned completed questionnaires (adjusted response rates of 52% and 49.7%), which asked them 23 closed-ended questions about (1) the methods and measures used to pretest TV commercial executions; (2) the perceived role of the agency versus the client in the selection of pretest methods; and (3) perceived changes in the role of the agency research department in TV commercial pretest research. Of those responding, 18 percent of the agency researchers and 19 percent of the advertising executives indicated that their agencies do not pretest TV commercials for assigned brands. Based on the responses of the 83 agency researchers and 72 advertising executives whose agencies pretest commercial executions, the findings suggest that the role of the agency research department has changed over the past 10 years. Most notably, there has been a proliferation in the use of qualitative methods and measures in TV commercial pretest research.     

Intermediary roles in local mobile advertising: Findings from a Finnish study

This research examines the intermediary roles that advertising agencies perform between small local advertisers and a mobile advertising service provider. The intermediary roles have been left unexplored, although the agencies have influence on their client's decisions to use new media. A real-life experiment of new mobile advertising system was conducted, and interview data from eight advertising agencies were collected. The findings show that agencies may play three types of roles. In playing connecting, mediating, and inhibiting roles, agencies influence the value created not only for their clients' but also for themselves and the advertising media provider.     

Towards effective advertising self‐regulation in Australia: the seven components

Despite claims of social and economic benefits, advertising has always had its critics. However, when dealing with unacceptable advertising, advertisers in developed countries usually choose a self‐regulatory approach in order to stave off government intervention. The recent breakdown of one of the world's longest established advertising self‐regulatory programmes in Australia has reopened the 20‐year‐old debate concerned with enhancing understanding of such regulatory systems. This article presents a framework for assisting in improving the effectiveness of advertising self‐regulation that is informed by both the literature and the key findings of an Australian study. The study used a mixed approach to data collection, including in‐depth interviews with regulators, advertisers and public participants and historical analysis of more than 10 000 complaints over a period of 10 years. From this research three key concepts are developed for assisting industry and regulators concerned with regulating advertising in eliminating undesirable features of such systems in the future. The empirical work succeeds in making both a practical and theoretical contribution to advertising self‐regulation specifically and industry regulation in general.     

The Early Years of Community Advertising

Community advertising was a term used early in the 20th century to describe efforts by local, state and federal govemments and private civic associations to attract tourists, conventions, farmers, residents, investors and manufacturers. The study describes community advertising thought and practice as it developed early in the 20th century. The orientation of early community advertisers is still applicable: that is, considering the community as a "product" having measurable attributes that are attractive to different segments for different reasons. Practitioners should of course remain up to date on the latest methods, as they have evolved and improved considerably during the century.     

An investigation of the influence of cinema environment on advertising effectiveness

Many advertisers are looking to cinema advertising as a nontraditional medium to reach consumers. Although several scholars have examined the effectiveness of this advertising vehicle, there is a dearth of empirically grounded research on how to improve such effectiveness. This study, based on the reactance and the equity theories, is probably the first academic project investigating how to manipulate an advertising environment in a real movie theatre to maximize advertising effectiveness. Results indicated that audiences in a distractive environment held a more positive attitude toward cinema advertising in general, but those in a restrictive environment were more likely to remember the advertised brands. In addition, the provision of ticket price information improved audiences’ acceptance of cinema advertising, but did not enhance recall. Moreover, the influence of ambient scent emitted into the atmosphere in a cinema room on ad recall dissipated when movie viewers became accustomed to such stimuli. Based on these findings, theoretical discussions and recommendations for practising managers were made.     

Taking Advertising Risks: The Case of Clerical Medical

This paper examines the process and issues involved in the management of advertising risk by advertisers with a focus on the case of a leading UK financial company, Clerical Medical Investment Group. The idea of an advertising risk cycle is proposed given that managers are likely to adapt their risk-taking according to past successes or failures. The factors influencing the propensity of advertising risk-taking are analysed focusing on budgetary slack, media scheduling, stakeholder perspective, management practices, environment, campaign planning process and knowledge and experience. Clerical Medical's advertising experience since 1990 largely supports the hypotheses for the risk cycle and propensity to take advertising risks. It is recommended that advertisers utilise appropriate pretesting techniques along with effective and rigorous planning and advertising risk audits.     

A Review of the Structure and Participants in Cameroon's Advertising Market

This article reviews the structure of Cameroon's advertising market. After discussing changes in the market since 1985, the authors describe its current structure. A comprehensive approach leads them to consider the market as a system based on interaction between institutions or organizations involved directly or indirectly in the advertising process. The authors conclude that, overall, Cameroon's advertising market is weakly structured and dominated by a small number of large advertisers. They feel that the advertising agency system, especially in terms of the services it offers, is poorly adapted to Cameroon's small and medium-sized advertisers. They therefore propose a system of small and medium-sized agencies that would play a specific role geared to the limited needs of these advertisers.     

The Relative Importance of Various Promotional Elements in Different Industrial Purchase Situations

Most advertisers perceive the views of economists on advertising as generally negative. This study attempts to determine how the role of advertising in the economic system is treated in basic economic textbooks. The assumption is that the materials presented in these introductory texts are reflective of the discipline's fundamental commonalities. The results derived from conducting a content analysis of non value laden issues indicate that most authors provide readers a balanced treatment of advertising. However, when assessed in terms of comprehensiveness and completeness, the majority of the surveyed texts fall short. These results hold out a number of implications for advertisers and economists alike and present several opportunities for further research.     

Self-Regulatory Safeguards and the Online Privacy of Preteen Children

Online advertisers are increasingly enjoying the ability to target messages to specific segments based on information collected at Web sites. Information collection, particularly from children, has been an ongoing concern of regulators, consumer advocates, and advertising industry organizations. Although the U.S. Federal Trade Commission (FTC) has advocated the implementation of safeguards (such as warnings, threats, and barriers) designed to limit children's online disclosure of sensitive information, little research to date has examined the effectiveness of these safeguards. We address this issue by first examining the current state of online safeguards for Web sites that target preteen children, a group shown to be particularly vulnerable to the persuasive efforts of marketers. We then present a quasi-experimental investigation of online safeguard types and how their effectiveness in limiting preteen information disclosure is moderated by the mediation strategies of parents. Implications for advertisers, policymakers, parents, and educators are discussed.     

Top advertisers & product categories in markets worldwide

The top advertisers and product categories give an overview on the nature of advertising markets. This review of the top ten advertisers and categories in the world's ten largest advertising markets shows that despite similarities, national markets remain distinctive.     

Attitudes of Indonesian Mothers Toward Food Advertising Directed to Children

Advertising directed toward children is a controversial issue with growing concerns from parents around the world, including emerging markets such as Indonesia. The reasons for its negative effects include that such advertising could lead to materialism, parent–child conflict, and feelings of unhappiness. In particular, advertising by food companies is a target for criticism due to concerns about unhealthy food and childhood obesity. This article reports on the findings of a number of focus groups of Indonesian mothers to obtain an indication of the mothers’ ethical judgment toward such advertising. The results identify reasons why the mothers found particular advertisements to be unethical and ways advertisements can improve their message. From the responses, some important issues are raised that would be of interest to international advertisers.     

Have “Millennials” Embraced Digital Advertising as They Have Embraced Digital Media?

Consumers’ attitudes toward advertising ethics are of interest to marketers who understand that negative attitudes can be harmful to brands. Today advertisers increasingly depend on internet advertising. This study compares attitudes of Millennials (the first generation to use digital media more than traditional media) toward internet advertising with attitudes toward advertising in traditional media. Similar to previous generations who had more negative attitudes toward TV advertising, which was their most frequently used medium, Millennials’ attitudes appeared to be more negative toward internet advertising. Thus, we conclude that advertisers must work to engender positive relationships with Millennials through more ethical internet advertising and other innovative strategies.     

The Media and Their Advertisers: Exploring Ethical Dilemmas in Product Coverage Decisions

Marketers are increasingly relying on promotional practices (variously labeled as stealth marketing, hybrid messages, covert advertising) based on the diffusion of product information by third parties that appear to be independent of advertisers. In this paper, we examine to what extent the media treat their advertisers favorably, providing these advertisers’ products extra visibility in supposedly neutral editorial content. Empirically, we model the determinant of media coverage of Italian fashion products in an extended dataset of consumer magazines in Italy, France, Germany, UK, and the USA. Research findings show that advertising is an important determinant of product placements in editorial content, and this result is consistent across countries and publishers. Our results imply that resource-rich advertisers engaging in compensatory advertising (that is, advertising investments that compensate poor product quality) might bias media coverage in their favor. Consumers will consequently be exposed twice to favorable messages about those products, in both advertisements and media content, resulting in higher purchases and reduced consumer welfare.     

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.     

Advertising as an Entry Deterrent: Evidence from UK firms

Advertising is widely considered to be an important isolating mechanism through which firms may defend an established competitive advantage. However, there is relatively little empirical evidence on the extent of the strategic use of advertising either to deter or in response to entry. In this paper, I report on a study of the advertising practices of 843 medium‐sized and large UK‐based firms. Nearly one‐quarter of all the advertisers surveyed state that they attribute importance to entry deterrence as an aim of their advertising. Further, one in five managers of advertising firms state that they would increase advertising expenditure if a new rival company appeared in their market. It is also apparent that there is a strong correlation between the perceived importance of advertising as an entry‐deterring tool and the intensity of advertising spending. Multivariate modelling provides confirmation that the existence of a sheltered market position, and the profitability that typically accompanies this, provides a statistically significant determinant of the decision to use advertising as a strategic entry‐deterring weapon.