Are Mergers Beneficial or Detrimental? Evidence from Advertising Agencies1

We study 33 pairs of advertising agencies that merged between 1947 and 1985, comparing each merging pair against two controls: (a) a pair of agencies with combined merger-date billings close to the total billings of the merged unit, and (b) a single agency with similar total merger-date billings. Gross revenues are the dependent variable. Results: Merging firms do worse in the short run than controls. Assuming similar subsequent rates of growth for merging and non-merging firms, a loss of 16 percent of firm value due to merging is implied.     

Client Perceptions of the Customer Orientation of Advertising Agencies

Abstract

A national random sample of advertisers evaluated the customer orientation of their advertising agencies. The respondents also rated the importance of various agency attributes for agency selection, as well as their level of satisfaction with the performance of their current advertising agencies. Client perceptions of the customer orientation of advertising agencies was found to be significantly related to clients' satisfaction with agency performance. The importance of customer oriented selling behaviors by advertising agencies are discussed.     

Market Research and Advertising Strategy in Portuguese Agencies: Perspectives of Professionals

SUMMARY

The advertising campaign development process is frequently described in manuals and textbooks. Nevertheless, the empirical perspective gives us a better understanding of the real world. In this study, we tried to understand, to systematize, and to describe the process of research and strategy in advertising agencies. To accomplish this objective we conducted 25 in-depth interviews with advertising agency professionals in Portugal. Cross-analysis of the statements allowed us to identify 5 themes: research done by the client before providing the brief to the agency, client's brief, information gathering done by the agency, brief's discussion inside the agency, and creative brief.     

On the Discursive Construction of Corporate Social Responsibility in Advertising Agencies

As the interest in corporate social responsibility (CSR) within advertising industry is growing, this paper explores the discourse on CSR among employees in advertising agencies. Different sensemaking dimensions are taken into account to examine how employees, as one of the key stakeholders involved in the joint meaning construction, make sense of CSR. In addition, this paper studies the legitimation approaches that employees use to address CSR of advertising agencies. The empirical evidence of discursive examples also indicates that there is a linkage between sensemaking and legitimation perspective in CSR discourse analysis and supports the idea that both may be a potential route toward institutionalization of CSR inside organizations or sectors.     

The Panoptic Role of Advertising Agencies in the Production of Consumer Culture

Advertising's role in promoting an ideology of marketed consumption has been widely commented upon by critical theorists yet the mechanisms through which this influence becomes manifest remain relatively under-examined. In particular there has been no explicit examination of the mediating role of cultural knowledge in the production of ideologically driven advertising. This paper invokes the panoptic metaphor to position the knowledge gathered by and on behalf of advertising agencies as a major dynamic in the production of consumer culture. The consumer of advertising is a known entity for advertising agencies: the subject is watched, filmed, questioned, recorded, and tracked. Indeed, consumer biography and subjectivity itself has become material that is both produced and consumed by advertising agencies in order to produce culturally constitutive advertising. The paper integrates disparate literatures to situate knowledge of consumer culture at the hub of advertising's constitutive ideological influence.     

Advertising Effectiveness Research: A Survey of Agencies,Clients and Conflicts

Pressure from clients is now forcing many, agencies to consider allocating resources to the development of effectiveness measures. Some agencies have for many years employed econometricians to develop rudimentary econometric models examining the relationship between advertising spends, campaign duration and sales volumes. For others, who believe that their major role is on the creative side, developing advertising campaigns and programmes which bring the brand to the consumers' attention and ultimately bring about purchase, there is a dilemma.     

Advertising and brand attitudes: Evidence from 575 brands over five years

Quantitative Marketing and Economics - Little is known about how different types of advertising affect brand attitudes. We investigate the relationships between three brand attitude variables...     

The Impact of Moral Reasoning and Retaliation on Whistle-Blowing: New Zealand Evidence

This study examined experimentally the effect of retaliation strength and accounting students’ level of moral reasoning, on their propensity to blow the whistle (PBW) when faced with a serious wrongdoing. Fifty-one senior accounting students enrolled in an auditing course offered by a large New Zealand university participated in the study. Participants responded to three hypothetical whistle-blowing scenarios and completed an instrument that measured moral reasoning (Welton et al., 1994, Accounting Education. International Journal (Toronto, Ont.) 3(1), 35–50) on one of two conditions – i.e., strong or weak retaliation for whistle-blowing. Consistent with the results of Arnold and Ponemon (1991, Auditing: A Journal of Practice and Theory 10, 1–15) this study found that the strength of retaliation and participants’ moral reasoning level positively affected their PBW. Unlike results reported in Arnold and Ponemon (1991, Auditing; A Journal of Practice and Theory 10, 1–15) a significant interaction effect of moral reasoning level and retaliation on participants’ PBW was not found. However, results showed that a participant’s gender has a significant effect on the relationship between his or her moral reasoning level and PBW. These results support the need to improve ethical awareness through accounting education and to increase protection for whistle-blowing (Miceli 2004, Journal of Management Inquiry 13, 364–366). Furthermore, many participants found it difficult to take a stand when serious wrongdoing is discovered. Therefore, policymakers must exercise caution when placing heavy reliance on whistle-blowing, especially when whistle-blower protection processes are complex and not easily accessible, and processes to facilitate whistle-blowing may vary substantially between public and private sector organizations (Scholtens, 2003, Review of the operation of the Protected Disclosures Act 2000: Report to the Minister of State Services).     

Participation by U.S. Agencies in International Brand Advertising: An Empirical Study

Abstract

Marry ad agency executives have proclaimed the era of the global advertising agency. They observe that corporations are moving towards placement of their worldwide advertising through a single agency, and they predict that a few large “mega-agencies” will take over a majority of international advertising accounts. Yet, no published studies have examined how many brands are actually handled by the same ad agency worldwide. This paper presents the results of a survey examining the extent to which U.S. companies use the same agency to advertise abroad and in the home market. The study found that of the brands sold abroad, only about one-third are handled by the same agency both at home and abroad. This proportion does not vary significantly with advertising budgets, by product class, or between standardized and non-standardized brands. In addition, no single-agency group or “mega-agency” handles more than eight percent of the sample brands, and no agency handles a majority of its U.S. brands abroad.     

Do Employers Comply with Civil/Human Rights Legislation? New Evidence from New Zealand Job Application Forms

This study assesses the extent to which job application forms violate the New Zealand Human Rights Act. The sample for the study includes 229 job application forms, collected from a variety of large and small, public- and private-sector organizations that together employ approximately 200,000 workers. Two hundred and four or 88% of the job application forms contain at least one violation of the Act. One hundred and sixty five or 72% contain two or more and 140 or 61% contain three or more violations. The most common violations concern age, gender, nationality, and disability. The least common concern political opinion, ethical belief, religious belief, and sexual orientation. Despite widespread violations, many forms do have non-discriminatory questions that yield the same kind of useful information as discriminatory questions. Employers could incorporate these into their job application forms to bring themselves into compliance with the law. The same lessons also generally apply to North American employers, given the high degree of comparability between American, Canadian, and New Zealand anti-discrimination laws.     

Corporate Advertising Pass-through onto the Brand: Some Experimental Evidence

While researchers and managers have speculated that corporate advertising can have an impact on brand knowledge, to date there is no empirical support for such "pass-through." We report on a laboratory study manipulating the presence or absence in a brand ad of retrieval cues for subjects' corporate advertising and their pre-existing brand knowledge. We found evidence of pass-through, but it was moderated by the retrieval of subjects' pre-existing brand knowledge. Our results have theoretical and managerial implications, and suggest a number of interesting opportunities for future research.     

The Role of Advertising in the Marketing Strategy of Accountancy Firms: Evidence from a Regional Market

Rules governing the advertising activity of accountancy firms have recently been relaxed. Published evidence is, however, scant regarding the perceived value of accountancy firms' advertising by both users of their services and by business advisers. Building on a conceptual model of the role of advertising in accountancy firms described in an earlier issue of this journal [Watkins and Wright, Service Industries Journal, Vol. 5, No. 3, November 19851, this article presents some results from a recent survey of a regional accountancy market. These results show that a careful examination of advertising within the overall marketing mix is required, with other forms of marketing perhaps offering greater possibilities. The overall conclusion is that the cost-effectiveness of the advertising of accountancy services h s t be open to doubt.     

Advertising Contribution to a Firm's Profit: Theory and Evidence from the Airline Industry in the United States

The author examined how to make advertising efficiency more effective in achieving the profit objective of a firm. The current study allowed profitability to be influenced by both multiple controllable efficiency factors (e.g., advertising efficiency and operations efficiency) and one uncontrollable environmental factor (i.e., growth timing). The results showed that advertising efficiency was most effective in driving up a publically-traded U.S. airline's profitability when the airline happened to grow its business later than average, whereas advertising efficiency was least effective when the firm ended up growing its business earlier than average. Also shown in the results was that drivers of profitability also included operations efficiency and growth timing.     

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.     

Searching for a New Advertising Agency: A Client Perspective

The recent downturn in economic conditions has motivated many organizations to reevaluate their advertising. Many companies have cut their spending and others have changed agencies in the hope of achieving a better return on their advertising expenditure. This article records information from a survey of ninety-five Australian companies which recently changed their agency, and sixty-one companies which thought they might change in the near future. The findings focus on the reasons for changing agencies, the types of information used to help select a new agency, and characteristics of the group of managers which selected a new agency.     

Articulating a New Framework for Visual Metaphors in Advertising

This study develops and tests a conceptual framework for categorizing visual metaphors in advertising according to whether the pictorial elements in the ad are synthesized or juxtaposed. In this attempt, it subscribes to the view that creative ideas frequently share similar design structures and patterns in devising visual metaphors. This study demonstrates that compared with ad visuals that simply juxtapose metaphorical objects, ad visuals that synthesize conceptually similar metaphorical objects provoke greater elaboration and elicit more favorable consumer attitudes toward both the ad and the brand. These positive effects are not free of comprehension costs, however. Ads that synthesize very dissimilar objects (as compared with ads that juxtapose objects) fail to produce the same benefits and might, in some cases, even risk reducing the persuasiveness of the argument about key product attributes in the advertising message.     

Business Ethics in New Zealand Organisations: Views from the Middle and Lower Level Managers

This study is carried out to assess the state of business ethics in New Zealand organisations from the point view of middle and lower level managers. The survey results clearly indicate that companies in New Zealand give low priorities to ethics with other values in the corporate culture. A significant number of respondents also believe that pressures from the top to achieve results and the organisational climate and ruthless competition help create an unethical environment. A greater emphasis on ethical content in the business curricula has been overwhelmingly supported by the respondents. Moreover, the majority of respondents also think that the ethical standard in New Zealand businesses has declined in the past decade.Finally, a number of suggestions have been put forward by the respondents to develop and maintain a high standard of ethical environment. These include mandatory moral/ethical education both in the educational institutions and in commerce and industry, commitment of top management and written and published code of ethics.