The Effects of Advertising Rates on Newspaper Advertisng Linage: A Pilot Study

The highly complex area of newspaper economics is often reduced to the simple statement-advertising revenue is a function of circulation. While this statement is obviously oversimplified, it does express the perceived importance of the circulation/advertising relationship to management of newspapers. The relationship's importance is further amplified by the fact that newspapers partially base advertising rate structures on circulation and advertising linage levels. Yet, surprisingly, very few attempts have been made to study the relationship between newspaper circulation, advertising rates and advertising linage empirically.

This study examines the effect of differences in newspaper circulation and advertising rates on the amount of total advertising linage, national advertising linage and retail advertising linage.

The results imply that circulation seems to have a significant and strong positive effect on total advertising linage in the sample analyzed. Time-series analysis confirm this finding. Circulation's effect on national advertising linage is even greater-elasticities of one or larger.

The effect on local advertising linage is much less elastic. but still significant. The effects of the advertising rate on advertising linage are much less clear from this research. In fact. it is not possible to draw any significant conclusions concerning the way advertisers respond to changes in the advertising rate from the results of the research. This is an area that needs more indepth research.     

The Effects of Humor on Attention in Magazine Advertising

Abstract

It was the objective of this investigation to determine whether humor in advertising heightens attention levels and whether the potential heightening of attention is moderated by audience confounds. The study utilized Starch readership scores obtained for humorous liquor ads which appeared in magazine issues surveyed by Starch from 1976–1979.

The results indicate that humorous ads tended to out perform magazine ad norms and that these effects are moderated by gender and racial audience composition differences.     

Construct heterogeneity and proliferation in advertising research

Abstract

This paper presents results from a study of measurement practice in leading advertising journals. The focus is on heterogeneity in measurement operationalizations of the same construct and construct proliferation (i.e. when constructs have different names but overlapping content). These issues were addressed by analyzing the measurement operationalizations in all articles published in three leading advertising journals between 2012 and 2014. Results show considerable heterogeneity in the operationalizations of three common advertising constructs (ad credibility, ad irritation and perceived humour) for which almost every study used a unique operationalization. Results also show considerable construct proliferation as different names were used for the same constructs and there was overlap in the operationalizations of several advertising constructs. The paper offers a discussion of implications for advertising research and suggests steps that can be taken towards improving measurement practice.     

Lancaster,Kent M. and Thomas C. Martin (1988). ADLAB,Gainesville, FL: University of Florida, 31 Pp. and software for IBM,Macintosh, and compatibles. $12.00

Abstract

Prior research on advertising literature consists primarily of studies of journal article authorship and author productivity, journal content and quality, and citation patterns. Absent from this stream of research is direct evidence of the influence of individual authors and their works in the form of peer evaluation and readership. For this study, a priori lists of influential books and articles were used in a survey of U.S. advertising educators and academic researchers. The results reveal a core of research-based and practice-oriented contributions of widely recognized importance and influence. The findings also provide (1) valuable lists of readings for current and future students and educators; (2) direct evidence of the quality of individual literary contributions; and (3) useful insights into the theoretical, intellectual, and practical foundations of the field.     

The differentiated effect of advertising on readership: evidence from a two-sided market approach

In this paper, we empirically analyze the French print media market by modeling the existence of a reciprocal effect between the size of the readership and the amount of advertising. For this two-sided platform, we measure the cross-effects of advertising on the readership and periodical popularity on advertising. By estimating a structural model of simultaneous demand equations, we quantify some crucial elements in designing pricing and product-differentiating strategies. We measure the impact of advertising on reader demand and find in the data that it has opposite effects depending on whether the publication presents informational or entertaining content. By taking into account the market interactions, we compute price and advertising elasticities. Our results show that advertisers targeting a specific category of the audience would choose its corresponding periodicals and would trade off the size of the readership for these periodicals and the advertising insert price changes. Also, advertising campaigns aimed at reaching a broader spectrum of the population should focus on popular titles and on titles for which demand is inelastic to ensure a more consistent impact of the campaign. Finally, for magazines with low price demand elasticity on the readers’ side, editors’ revenues could be improved by increasing prices. These combined effects should allow a publisher to generate positive margins from both sides of the market, for certain content categories.     

Disclosing brand placement to young children

In spite of the EU's prohibition on brand placement in children's programmes, it is argued that children may still be exposed to this advertising format in many occasions. Consequently, and as children may have even more difficulties than adults to distinguish the commercial content from the editorial media content in which it is embedded, an advertising disclosure may be necessary to enable them to cope with brand placement. Entailing two one-factorial between-subjects experiments, the current article examined how different types of brand placement warning cues influenced cognitive advertising literacy and the attitude toward the placed brand, among children between 8 and 10 years old.

In a first study, it was investigated how these outcomes were influenced by warning cues with different perceptual modalities (no vs. auditory vs. visual cue, N = 98). The results showed that a visual warning cue was more effective than an auditory warning cue (vs. no warning cue) in addressing cognitive advertising literacy. However, this higher cognitive advertising literacy could not account for the effect of the visual warning cue on brand attitude.

In a second study, it was examined whether the effectiveness of this visual warning cue was influenced by the timing of disclosure (cue prior to vs. during media containing brand placement, N = 142). Additionally, it was tested whether the effect of the cue on brand attitude could be explained by cognitive advertising literacy if children's sceptical attitude toward the brand placement format was taken into account. The results showed that cognitive advertising literacy was higher when the cue was shown prior to than during the media content. This cue-influenced cognitive advertising literacy resulted in a more positive brand attitude, but only among children who were less sceptical toward brand placement. This positive relation disappeared among moderately and highly sceptical children.

These findings have significant theoretical, practical and social implications.     

Humorous Illustration and Cartooning — A Guide for Editors,Advertisers, and Artists. Nelson,Roy Paul. Englewood Cliffs,NJ: Prentice-Hall,Inc., 1984. 243 Pp. $12.96

Abstract

Previous research on negative political advertising has found both intended and backlash effects, indicating that the impact of these ads is likely to be contingent on other factors. The current study examines some potentially important contingent variables — level of involvement and attention to both newspapers and television for political information. Regression analyses indicate that both enduring and situational involvement and attention to television news increase the impact of negative political ads on voting decisions. Although it initially appears that attention to newspaper is unrelated to the impact of negative ads, analysis of covariance shows that newspaper reading actually reduces the impact of negative ads after controlling for other variables.     

The Effect on Sales of Color in Newspaper Advertisements

Little empirical research is available on the effects on retail sales of the use of color in newspaper advertising. This study analyzes the results of two experiments conducted by the Long Beach Independent Press-Telegram, and concludes that median sales volume gains of approximately 41% may be realized by using one-color, single-exposure newspaper ads, instead of otherwise identical black-and-white ads, for price-reduced items. This conclusion is supported by statistical analysis of empirical data on actual sales.     

The Consumers of Vidalia Onions

Abstract

This study presents results of a survey of primary food shoppers who were consumers of sweet onions. The sample was stratified according to Vidalia onion shipments to five delineated regions of the United States, weighted by the U.S. Census. Results suggest that Vidalia onions are the preferred sweet onions, there is little away-from-home Vidalia onion consumption, and quality is of great importance. A low level of recall for Vidalia onion advertising was found. However, among the alternative forms of advertising, TV, newspaper, and in-store promotion were found to be more effective, especially the combination of newspaper inserts and in-store promotion.     

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.     

Choosing a digital content strategy: How much should be free?

Advertising supported content sampling is ubiquitous in online markets for digital information goods. Yet, little is known about the profit impact of sampling when it serves the dual purpose of disclosing content quality and generating advertising revenue. This paper proposes an analytical framework to study the optimal content strategy for online publishers and shows how it is determined by characteristics of both the content market and the advertising market. The strategy choice is among a paid content strategy, a sampling strategy, and a free content strategy, which follow from the publisher's decisions concerning the size of the sample and the price of the paid content. We show that a key driver of the strategy choice is how sampling affects the prior expectations of consumers, who learn about content quality from the inspection of the free samples. Surprisingly, we find that it can be optimal for the publisher to generate advertising revenue by offering free samples even when sampling reduces both prior quality expectations and content demand. In addition, we show that it can be optimal for the publisher to refrain from revealing quality through free samples when advertising effectiveness is low and content quality is high. To illustrate, we relate our framework to the newspaper industry, where the sampling strategy is known as the “metered model.”     

Exciting on Facebook or competent in the newspaper? Media effects on consumers’ perceptions of brands in the fashion category

Abstract

Media investments are continuously shifting from traditional media like newspapers to digital alternatives like websites and social media. This study investigated if and how media choice between the two rival channels can influence consumers’ perceptions of a novel brand. 504 Swedish retail fashion customers participated in an experiment to evaluate the identical advertisement placed either in a national newspaper or on Facebook. The results revealed that advertising in a newspaper can have a positive effect on brand equity facets and purchase intention through brand personality perceptions of being competent, while advertising on Facebook have similar effects but through perceptions of being exciting. Besides some evidence that choice between traditional and new media affects brand personality this study is one of the first attempts to incorporate media channel choice into the broader customer-based brand equity framework. The results from this particular study suggest that media channel choice should be considered from a brand equity building perspective at least in the fashion category. This study shows that different media channels could complement each other strategically, as traditional media channels still can have valuable and unique contributions to brand building through brand personality perceptions, especially for brands striving to be perceived as competent.     

Productivity and impact in advertising research since the millennium: a profiling and investigation of drivers of impact

What does it take to become a top advertising scholar in productivity? What drives impact in advertising research? This article sets out to answer these two questions by assessing the productivity and impact among scholars and their work in advertising since the millennium. As a two-part study, we begin by benchmarking and profiling the top 1% scholars in the field based on their research publications in the three top advertising journals (Journal of Advertising, Journal of Advertising Research, and International Journal of Advertising). Next, we employ a three-perspective conceptual model to identify the salient drivers of impact in advertising research. By content analyzing 1443 articles in the three journals published between 2000 and 2014, we show that certain universalistic and particularistic factors (to a lesser extent) significantly predict paper citations. Our findings reveal how advertising academia is advancing and showing signs of internationalization in the new millennium, which provides implications for the field's advancement and scholarship.     

Information Content of Advertising in the United States,Japan, South Korea,and the People's Republic of China

The results of this four country-four media study indicate that different countries/cultures have varying degrees of information cues in their advertising. Broadcast media (television and radio) have lower information content than do print media (magazine and newspaper) in all countries. Overall, the average number of cues per advertisement for all four countries was: 3.10 for magazine, 2.91 for newspaper, 2.14 for television, and 2.05 for radio. The study found that the information content (number of cues) and the type of cues varied by media within each country. This implies that international advertisers need to consider their strategies in developing advertising themes for various target audiences in different countries.     

Global Advertising Practices

Abstract

This empirical study of European, Japanese and U.S. multinational companies provides a cross-sectional investigation on the degree of standardization practiced in advertising strategy and message elements, objectives and types of content of standardized advertising and ways of using adapted strategy. Based on the sampled data, no statistical difference was found for any of the analyses at the 0.05 significance level. However, it can be concluded from the data that global marketers are moving toward standardization in their advertising. The contributions of this research can be significant for both academicians and practitioners. Managerial implications and future research directions were also provided.     

Media generations and their advertising attitudes and avoidance: a six-country comparison

This cross-national survey (N = 5784) examined generational differences in media use, advertising attitudes and avoidance for five media (websites, social media, mobile phones, television, newspapers) in six countries (Germany, Spain, United Kingdom, United States, France, and the Netherlands). The results showed that the net generation and the newspaper generation, but not the TV generation, were clearly distinct in the frequency of their media use in all six countries. For advertising attitudes, generational patterns were visible, however, neither for all media nor in all countries. When generational differences did occur, the net generation was on the positive end, whereas the newspaper generation was usually the most negative. For advertising avoidance, generational patterns were less present and consistent. The findings point out interesting directions for future research. Practical implications for advertisers and media planners are discussed.     

The Search for a Good Measure of Magazine Readership: The TGI-Simmons Controversy

Magazine readership has been important to the advertising field for a long time. Interested parties have included agencies, clients and the magazines. With the introduction of Target Group Index (TGI) the routine use of W. R. Simmons and Associates syndicated services has been questioned as well as what “readership” really means.

This project attempts to accomplish three objectives: (1) develop a few normative standards for measuring magazine readership. (2) compare TGI and Simmons in terms of their performance against these standards, (3) develop some reasoning for where there are, in some cases, substantial discrepancies between results that are designed to measure the same construct. The authors wish to thank Dr. Alan D. Fletcher of the Department of Advertising, University of Tennessee, for his helpful comments.     

How Chipotle used unbranded content to increase purchase intention by changing beliefs about ethical consumption

Abstract

To combat ad avoidance, advertisers are moving advertising into programs, a practice known broadly as branded entertainment. The difficulty of advertising to Millennials has also prompted the use of unbranded cause advertising, to increase awareness of issues championed by the brand, without triggering defensive persuasion-coping strategies. Chipotle combined both these trends when it produced a relatively unbranded piece of branded entertainment, Farmed and Dangerous, a four-episode sitcom that humorously dramatized the ethical issues raised by industrial farming. When the series ran on Hulu, an online television network, it increased sales for the Chipotle brand and won awards for its creators. This study reports a classic pre/post experimental design, to show how exposure to this unbranded entertainment increased purchase intention by changing beliefs about ethical issues related to the environment, nutrition, and gene technology.     

Local Retail Segmentation Using the CETSCALE

Abstract

The CETSCALE was used to segment a local retail luxury sedan market into pro-import and anti-import groups. Four versions of a newspaper advertisement for both Cadillac and Lexus luxury sedans were tested across these two segments. Non-comparative, weaker indirect comparative, stronger indirect comparative, and direct comparative advertising headlines were used in a between-subjects design. An existing automobile dealership selling both Cadillac and Lexus brands was used as the test sponsor. Results unexpectedly indicate that the pro-import segment favors the hard-hitting direct comparison format significantly less than the anti-import segment, finding it less believable, likable, convincing, and professional, plus more boring.