Does advertising grow markets?

Many observers believe advertising increases market size (with the implication that fewer people would smoke or drink alcohol or buy cars if there were no advertising for those products), and that it works by creating desires. This paper examines the historical evidence and recent case histories of successful marketing campaigns from the UK’s IPA Effectiveness Awards. It turns out that very few advertisers have tried to increase the size of their market or claim to have done so. In the few cases that describe an increase in market size, we see consumers switching from one type of product to another, without increasing their total category consumption. No case claims to have created a new desire. The inference is that banning or restricting advertising may be an ineffective instrument of social policy.     

The Ethics of Food Advertising Targeted Toward Children: Parental Viewpoint

The children’s market has become significantly more important to marketers in recent years. They have been spending increasing amounts on advertising, particularly of food and beverages, to reach this segment. At the same time, there is a critical debate among parents, government agencies, and industry experts as to the ethics of food advertising practices aimed toward children. The␣present study examines parents’ ethical views of food advertising targeting children. Findings indicate that parents’ beliefs concerning at least some dimensions of moral intensity are significantly related to their ethical judgments and behavioral intentions of food advertising targeting children as well as the perceived moral intensity of the situation.     

我国广告业上市公司的发展分析

随着传播环境的多元化和政策环境的日益宽松,产业整合成为我国广告业下一步发展的重要方向,运用资本是实现产业整合最主要也最易操作的方式,而上市作为运用资本的一个主要方式,对我国广告企业的发展有很重要的意义。本文介绍了我国现有广告业上市公司的发展历程、上市方式、上市地域和公司类型的分布,对近十年我国广告业上市公司的发展概况进行梳理,并对广告业公司运用资本的制度环境进行了分析,试图为广告企业更好的了解上市的途径和作用,借助公众资本促进自身发展提供一些参考。     

刍议上海金融广告的媒介策略

金融广告在未来广告产业发展中,将日益突显出其作为新的投放增长点的趋势。然而作为广告产业发展的新领域,为避免其在发展过程中少走弯路,尝试以上海金融广告市场为例,分析目前金融广告投放的主要问题,提出未来发展的策略建议。     

Awareness Advertising and International Market Segmentation

In recent years, multinational corporations have increasingly employed advertising in markets where their products are not available. Such ‘awareness advertising’ is only in small part for products that are likely to be introduced in those markets in the near future. A significant and larger part of awareness advertising is for products that are unlikely to be sold in the particular market because of government restrictions on commercial importation and sale. In this paper, we will analyse the motivation behind the use of awareness advertising, the benefits that multinational firms may receive from such advertising and its implications for international market segmentation. The paper concludes with a discussion of areas for fruitful future research on awareness advertising.     

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.     

The Competitive Effects of Advertising in the US Automobile Industry, 1970‐94

Is advertising anticompetitive? One school of thought in industrial economics holds that advertising increases profits and reduces consumer welfare by creating spurious product differentiation and barriers to entry. Another school focuses on the informative character of advertising, claiming that advertising makes markets more competitive and reduces profits by supplying consumers with information about price and quality. We distinguish these views by examining the effect of advertising on competition in the US automobile industry. Our data include advertising, sales, profit, and market-share figures for General Motors, Ford, and Chrysler over a 25-year period from 1970 to 1994.We ask if advertising increases or decreases profitability, controlling for market structure and other factors affecting demand.Wefind that these firms cannot increase their profits above normal levels by increasing their advertising expenditures. This evidence supports the view that advertising serves primarily to transmit information, not to create entry barriers.     

Banking on Advertising

During the last decade, advertising has emerged as a most important promotion medium for the banks. The competitive pressures within the personal savings markets have become more intense. The banks have become noticeable by their aggressive promotion, through increased advertising expenditure, radical changes in style and forms of advertising, and their increasing use of television. In 1971, the joint stock banks spent M£2.5on advertising and only 4 per cent of this was directed through television. By the end of 1981, expenditure had increased to M£22.6 with over 50 per cent directed through television.     

Practitioners’ perceptions of advertising strategies for digital media

Digital advertising is set to become a serious challenger within the rapidly changing media landscape. Today there are concerns that advertising strategies based on models and experiences developed with traditional media may need to be reviewed in the digital market. To provide insights into how online advertising strategies might need modification, 21 in-depth interviews were conducted across organisations representing key stakeholders in the digital advertising market. findings identified five key trends relevant to advertisers including: a move towards permission-based advertising; higher levels of personalised advertisements; more three screen advertising campaigns; increased levels of interactivity and the development of performance-based metrics. In the context of these trends, nine propositions are posited concerning the effective formulation and management of digital advertising strategies.     

Advertising non-premium products as if they were premium: The impact of advertising up on advertising elasticity and brand equity

Non-premium brands occasionally emulate their premium counterparts by using ads that emphasize premium characteristics such as superior performance and exclusivity. We define this practice as “advertising up” and develop hypotheses about its short- and long-term impact on advertising elasticity and brand equity respectively. We test the hypotheses in two large-scale empirical studies using a comprehensive dataset from the automotive industry that includes, among others, the content of 2317 television ads broadcast over a period of 45?months. The results indicate that advertising up increases (decreases) short-term advertising elasticity for non-premium products with a low (high) market share. The results also show that an intensive use of advertising up over time leads to long-term improvements (reductions) in brand equity for expensive (cheap) non-premium products. Furthermore, an inconsistent use of advertising up leads to reductions in brand equity. The results imply that managers of non-premium products with a low market share can use advertising up to increase advertising effectiveness in the short run. However, advertising up will only generate long-term improvements in brand equity for expensive non-premium products. Finally, to avoid long-term reductions in brand equity, advertising up should be consistently used over time.     

Investor sentiment and advertising expenditure

A strategic issue facing marketing managers is ‘how much and when’ to spend on advertising. We argue that investor sentiment in the stock market may influence advertising expenditure by affecting firms' ability to raise new funds. We show that during periods of low (high) investor sentiment, firms decrease (increase) their advertising expenditure, even though the effectiveness of advertising is greater (lower) during such periods. We also find that these results are stronger for financially constrained firms that rely more on external financing. Our findings suggest that marketing managers can improve the efficiency of their advertising expenditure by raising (reducing) it during periods of low (high) sentiment.     

Seeing the market: performative sensemaking and the case of advertising agencies and their clients

ABSTRACT

How do market intermediaries help other market actors see the market and their opportunities for action within it? This article introduces a theoretical framework of performative sensemaking to explore this question using the case of advertising agencies and their clients. Drawing on 12 months of participant observation and 81 interviews conducted across four general market American advertising agencies, the article illustrates how advertising practitioners provide their clients with visions of what the market is and what opportunities for action lie within it, developing advertising campaigns to match that vision. These performed accounts of the market are dynamically negotiated and socially embedded, reflecting the identities of the clients, their target audiences, and the intermediaries themselves. Because intermediaries dramaturgically perform these interpretations of the market for their client in micro-level interactions, they must also deal with contestation and negotiation over their visions of the market.     

A Preliminary Investigation into the Causes and Effects of the Rise and Fall of Advertising Expenditures in Sweden

The purpose of this study is not only to chronicle the rise and fall of advertising expenditures in Sweden from 1975 to the present day but also to consider possible causes for their rise and fall. It is hoped that understanding the nature of these variations will become a key to the deeper understanding of the advertising market place. Both traditional and non-traditional media were studied. It was suggested that variations in advertising expenditures stemmed from two broad factors: (1) the demand for advertising space, determined by the advertisers; and (2) the supply of advertising space, determined by the media. These factors are intrinsically affected by external factors such as business cycles and legal and social environments.     

Examining Polish Market Mavens and Their Attitudes Toward Advertising

Abstract

In this paper, we offer some insights about Polish consumers with varying levels of general marketplace expertise, their role in diffusing product information, and their views of advertising. Market mavens are consumers who exhibit heightened interestin and knowledge about the marketplace. Because of their interest in communicating with others about the many aspects of the marketplace, these consumers can play an integral role for companies interested in diffusing marketing information. Our study results indicate that market mavens do indeed exist in Poland and they exhibit similar characteristics to market mavens identified in the U.S. They have more favorable attitudes toward advertising than other consumers. Additionally, they consider advertising as an important source of product and social image information. Although Polish mavens are less critical of advertising being misleading and confusing, they are concerned about advertising promoting materialistic values. Our findings imply that firms doing business in Poland would be well advised to target market mavens because they pay attention to advertising, have favorable attitudes toward advertising, and like to talk about marketplace phenomena with others.     

Advertising in the Large-Four Institutional Views

Broad assumptions about how advertising does-and should-function in society influence the thinking and actions of critics and supporters alike. Carey, Norris, Potter, and Sandage have analyzed advertising as an institution in American society. Here their “macro” perspectives are first described and then analyzed for their implications. Carey sees advertising linked with “market information,” and Norris with producers' quest for market power. Potter is wary of advertising's social control in an abundant society, while Sandage views advertising as serving the best interests of citizen and society. Their reasoning-and implications-are intriguing.     

Advertising and the Federal Trade Commission: A Reposte

Abstract

Making advertisements which perform their basic function of selling goods and services in a competitive economy has become more difficult lately, largely due to increased intervention in advertising matters by the Federal Trade Commission and a broadening of their interest in all affairs relating to the market place. Somewhat paradoxically, this has had some favorable effects on the advertising business. It has encouraged greater attention to product performance. It has caused advertising to be more specific and accurate in what It says or implies. And it has accelerated the movement toward serious advertising self-regulation. But it's a short step from the sublime to the ridiculous. And in its vigorous efforts to regulate, the FTC has often overstepped its authority and has taken stupid—If not down-right dangerous—positions.     

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.     

Perceptions of IMC and organisational change among agencies in South Africa

This paper reports on the development of Integrated Marketing Communications (IMC) in an emerging market, South Africa. It also deals with the organisation of advertising agencies in an IMC environment. A brief overview of IMC is given as well as a review of the organisation of agencies. The study consisted of in-depth interviews of 20 senior advertising agency executives. The results indicate that most agencies are developing their IMC strategies and that it is growing in importance in South Africa. Some recommendations are proposed to enable agencies to become more effective in future.     

网络广告监管机构体系与手段

本文在分析网络广告监管机构及其职能基础上,提出在现有管理框架下,以新思路、新方法和手段多角度构建网络广告市场监管体系,包括立法、行业自律、行政执法、舆论监督、国际协作与联动监管,并以追究责任手段,落实网络广告监督。     

The capital market spillover effect of product market advertising: Evidence from stock price synchronicity

We analyze whether product market advertising has a spillover effect on stock price synchronicity by transmitting firm-specific information to the capital market and attracting more investor attention. Using a sample of Chinese listed firms from 2009 to 2017, we find that firms with greater advertising expenditures have lower stock price synchronicity. The results are robust after we address endogeneity concerns. In accord with our hypothesis that product market advertising increases the amount of firm-level information capitalized into stock prices through the information channel, we find that the impact of advertising on synchronicity is more pronounced for firms with a higher degree of information asymmetry and firms in the consumer-product industry. Further tests show that product market advertising enhances the ability of current period returns to reflect future earnings, and thus rules out that the negative relationship between advertising and synchronicity is driven by noise trading. Our results imply that product market advertising plays an informative role and improves information efficiency in a capital market.