Incorporating long-term effects in determining the effectiveness of different types of online advertising

Although online advertising has become a full member of the marketing mix and is still growing in importance, studies of long-term, or lagged, advertising effects have generally either neglected online advertising channels or have treated online advertising as one homogeneous block. We analyze the short- and long-term effectiveness of different types of online advertising channels by incorporating separate time lags for each advertising channel. We look at the sales effect of email, banner, and price comparison advertising (PCA) using a sample of 2.8 million purchases and more than 1.1 million individual costumers aggregated to 365 days. Our analysis shows that email advertising has the longest effect, followed by banner advertising and PCA. We find that the length of the effect does not always go hand in hand with its intensity since, for example, banner advertising lasts longer than PCA but performs worse in terms of actual sales. This research yields important insights for theory and practice since it shows how to model long-term advertising effects and provides meaningful insights for improving the allocation of advertising budgets.     

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.     

Lawyers' Attitudes Towards Legal Services Advertising in Canada

There has been an abundance of research conducted in the United States to determine lawyers' attitudes towards legal service advertising and their intentions to advertise. However, there has been little replication of such studies in Canada. This study discovered that although there is not widespread opposition to legal service advertising, there is some disagreement and confusion over the value of advertising and some negative attitudes persist towards some aspects of advertising, particularly the advertising of legal fees. Further, there is some relationship between lawyers' attitudes towards advertising and the lawyer's personal and practice-related background.     

Sex Differences in Socially Responsible Advertising Decisions

This article attempts to document potential differences in socially responsible behavior exhibited by male and female advertising executives. Earlier research has found that female advertising majors see themselves, and the “successful” advertising practitioner, as being more sincere and honest than do male advertising majors. This indicates that, once a practitioner, female advertising executives may perform in a more socially responsible manner. Findings reported in this article do indicate greater social responsibility in advertising content decision-making by female advertising executives. Further research is called for and some possibilities are suggested in the article.     

Effects of ironic advertising on consumers’ attention,involvement and attitude

The use of an ironic message in advertising has increased, but little empirical research has been conducted to identify the effects of ironic advertising on consumers. This study demonstrated that ironic advertising can lead to consumers’ higher attention to the ad and greater involvement in the ad message compared to non-ironic advertising, applying schema incongruity theory. This study also examines whether ironic advertising influences consumers’ attitudes toward the ad and the brand. Lastly, this study identified a moderating role of need for cognition on ad attention.     

Alternative Econometric Estimates of the Effect of Advertising on the Demand for Alcoholic Beverages in the United Kingdom

Using, for the first time, a system-wide approach to analysing the impact of brand advertising on generic demand and applying this new technique to the UK market for alcoholic beverages, the author finds that wine advertising has a significant impact but that spirits advertising has none.     

网络广告主体法律制度的完善

随着网络媒体的迅速发展,网络广告大有取代传统媒体广告的趋势,但是,其法律规制却相对滞后,各国对网络广告的法律定位及立法模式尚未形成统一的认识。由于某些网络广告的基本理论问题尚未得到解决,目前我国网络广告的法律监管仍然处于一个较低的水平,从而直接影响了广告法律、法规的执行。为此,应借鉴电子商务发达国家的实践经验,尽快完善我国网络广告主体法律制度。     

The Advertising–price Relationship: Theory and Evidence

The relationship between advertising and price is important because the welfare effect of advertising depends upon the price effect of advertising. We attempt to provide a better understanding of the theoretical relationship between advertising and price. We establish theoretical conditions sufficient for advertising to raise prices. This will occur, for example, when firms play a supermodular game – a structure that considers the type of advertising (i.e., persuasive, image creating, or informative) and the effect that advertising has on a firm’s demand and costs. We also compare results from two simple duopoly models, one with horizontal and the other with vertical differentiation, and find that only the model with horizontal differentiation is supermodular for the forms of advertising that are thought to raise price (e.g., persuasive advertising). In consideration of these theoretical issues, we then develop an empirical model to determine whether advertising raises prices in the US brewing and cigarette industries.     

Do new forms of television advertising occasion better recall than traditional advertising spots?

The loss of effectiveness of television advertising centred on advertising spots has caused the development, and subsequent consolidation, of new forms of advertising within this medium. While management assumes that these new forms of advertising generate greater recall, in order to justify their usage, there is a noticeable lack of research evidence to prove this supposition. Therefore, in this article we use a representative sample of Spanish television audiences to compare the advertising recall that advertising spots generate, as opposed to that occasioned by a combination of new television advertising formats. The empirical analysis was carried out by means of an Ordered Probit model, which showed that the new forms of advertising gave rise to better recall than advertising spots, as much with regard to aided as with unaided recall.     

Advertising and Economic Development

In this article it is argued that West Germany has developed into the largest advertising market with the highest productivity per employee in Western Europe. We observe a continuous increase of net advertising turnover during the 1970s. Some extraordinary characteristics of the German advertising market (such as the structure of the TV advertising market and the printed media industry), which set it into sharp contrast to other European advertising markets, are discussed. Furthermore, we analyse the relationship between advertising and the business cycle movement (procyclical v. anticyclical advertising strategies) and we find that the majority of German business firms still pursue a procyclical advertising strategy although evidence seems to prove that an anticyclical advertising policy adopted during recessions will result in higher market shares and strengthened market positions of advertised brands.     

The impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value

This research examines the impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value. Using proprietary data on annualized advertising expenditures for 1651 firms spanning seven years, we document that both display advertising and paid search advertising exhibit positive effects on firm performance (measured by sales) and firm value (measured by Tobin's q). Paid search advertising has a more positive effect on sales than offline advertising, consistent with paid search being closest to the actual purchase decision and having enhanced targeting abilities. Display advertising exhibits a relatively more positive effect on Tobin's q than offline advertising, consistent with its long-term effects. The findings suggest heterogeneous economic benefits across different types of advertising, with direct implications for managers in analyzing advertising effectiveness and external stakeholders in assessing firm performance.     

Dealing with complaints about advertising in Australia: the importance of regulatory self-discipline

Many countries have imposed restrictions on tobacco advertising in the belief that these will curb tobacco consumption. These beliefs rely on the ‘strong’ theory of advertising, which holds that advertising exerts a powerful persuasive influence on consumers' behaviour. However, the research examining the advertising-consumption relationship has reached contradictory conclusions and led some to argue that such bans are ineffective.

In contrast, proponents of the ‘weak’ theory of advertising suggest that advertising reinforces rather than initiates consumers' behaviour. This paper explores tobacco advertising restrictions in the context of the weak theory and suggests that the apparent failure of increased restrictions to depress either juvenile or aggregate tobacco consumption is unsurprising. The paper concludes that decisions about tobacco advertising restrictions are political and should be based on ethical principles and not on assumed behavioural consequences, which are unsupported by modern advertising theory.     

Does food advertising influence children’s food choices? A critical review of some of the recent literature

Food advertising to children is an issue that is at the centre of debate and the purpose of this paper is to critically examine the claims and the evidence. Several issues are examined: the child’s understanding of advertising, the content of advertising to children; food choices in families, children’s food choice and behaviour, and the effect of advertising on food choice. Major conclusions are the following: that children understand the function of advertising from the age of 8–9 years, although there are limitations on how effectively they apply this knowledge; that the content of advertising to children has remained relatively unchanged for 25 years; that children play an active role in food choice in families; that children’s dietary preferences and habits are well-established before advertising is understood; and that advertising’s role in children’s food choices and preferences is multi-factorial and complex.     

Mistaken Inferences from Advertising Conversations: A Modest Research Agenda

I review the changing advertising landscape and suggest that the definition of advertising has inherently changed. Using the current advertising context, I develop research questions that consumer behavior scholars are well poised to address. This research agenda is rooted in real-world observations about advertising and can help us develop new theories about when, how, and why advertising influences and persuades consumers. A recurring theme in this article is that consumers may be misled due to information overload from multiple channels and sources. I use the advertising-as-conversation metaphor to derive hypotheses and test one such hypothesis in an experiment. I end with a summary and discussion of advertising impact measurement.     

Observations

This article is a commentary on the theme of the 2012 ICORIA Conference held in Stockholm, which was about ‘The changing role of advertising’. We propose that the role of advertising has not changed. The role of advertising has always been, and will continue to be, to sell more of the branded product or service or to achieve a higher price that consumers are willing to pay than would obtain in the absence of advertising. What has changed in recent years is the notable worsening of the academic–practitioner divide, which has seen academic advertising researchers pursuing increasingly unrealistic laboratory studies, textbook writers continuing to ignore practitioners’ research appearing in trade publications and practitioner-oriented journals, and practitioners peeling off into high-sounding but meaningless jargon. Also evident is the tendency to regard the new electronic media as requiring a new model of how advertising communicates and persuades, which, as the authors’ textbooks explain, is sheer nonsense and contrary to the goal of integrated marketing. We provide in this article a translation of practitioners’ jargon into more scientifically acceptable terminology as well as a classification of the new advertising formats in terms of traditional analogs with main stream media advertising.     

广告策略对消费者-品牌关系的影响:一项基于消费者品牌喜爱度的研究

This research investigates the effects of advertising strategy, that is, rational advertising and emotional advertising, on brand love. Based on the consumer-brand relationship literature, brand love is defined as a reciprocal, dynamic, multiplex, and purposive relationship between satisfied consumers and their brands, and has three key components: brand intimacy, brand passion, and brand commitment. Using a series of pretests and a main experiment, we examine how rational and emotional advertising affect brand love as well as its components for different products and services. Results show that for products, there is an interaction between advertising strategy and product type in influencing brand love. Specifically, rational advertising is more effective for utilitarian-value based products while emotional advertising is more effective for hedonic-value based products. For services, we find that emotional advertising is more effective for both utilitarian- and hedonic-value based services.     

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.     

Advertising Standardization

The use of standardized international advertising by multinational corporations has long been a dominant topic in the advertising literature. To date, however, no study has comprehensively investigated the extent to which standardization of advertising may be occurring in practice. This paper examines the practices of a sample of US—based multinationals with respect to advertising and reports a relatively high degree of standardization across a range of advertising decision variables. Several hypotheses regarding relationships among advertising variables and between advertising variables and potential moderating variables (as suggested by the literature) are evaluated.     

Predicting Consumer Avoidance of Native Advertising on Social Networking Sites: A Survey of Facebook Users

Abstract

As a result of constant efforts to improve consumers’ online advertising experiences, native advertising has started to gain popularity on social networking sites (SNSs). This survey study examined antecedents of avoidance of native advertising on SNSs and the moderating role of consumer skepticism toward native advertising. Our findings suggest perceived intrusiveness and perceived informative and entertainment advertising value as major antecedents of consumer advertising avoidance. Additionally, the number of brands that consumers are following on SNSs and negative communication among peers on SNSs were found to be factors affecting native advertising avoidance. Finally, consumer skepticism toward native advertising was found to be an important moderating variable in the mechanism of advertising avoidance on SNSs.     

广告产业的内涵及研究意义

广告从作为一种重要的营销手段发展成为一个相对独立的产业并没有引起广告学者和产业经济学家的足够重视。广告产业研究是广告产业实践提出的新要求,是广告学和产业经济学研究的具体化和深化,拓宽了产业经济学的研究领域,完善了广告学科体系,对指导中国广告产业发展具有重要的理论和现实意义。