An Evaluation of the Effectiveness of Internet Advertising Tools

ABSTRACT

This study explores a wide variety of Internet advertising tools. It presents an assessment of the persuasive impact of Internet advertising tools based on the perceptions of senior executives at interactive advertising agencies. The persuasion matrix developed by McGuire (1978) is used as a framework for assessing the impact of Internet advertising tools on the response hierarchy of consumers. Based on this assessment, a series of research propositions are offered in the spirit of propositional inventories for future testing. Finally, included is a discussion that alerts managers to important issues involved in using Internet advertising tools.     

Packages with Cartoon Trade Characters Versus Advertising: An Empirical Examination of Preschoolers' Food Preferences

The present study examines mainly the comparison between child-appeal packages and TV advertising and suggests that packages with cartoon trade characters play a more effective role compared to TV advertising in preschoolers' food preferences.

Preschoolers who watched a cartoon film CD embedded with commercials (the treatment group) and who watched the same CD without commercials (the control group) selected the chocolate wafer with a cartoon trade character (73.6% vs. 26.3%) rather than the advertised one.     

The Effectiveness of a Buzz Marketing Approach Compared to Traditional Advertising: An Exploration

Marketers are now willing to go anyplace they can find a captive audience to espouse the virtues of their products. The success of the “buzz” marketing approach is linked to the consumer being lured into doing the advertising by spreading the message to others. This study compares students’ responses to a traditional advertising and a buzz approach. Using a factor analysis to identify variables, the results show that subjects perceive a buzz approach to be more influential than a traditional advertising. However, they do not perceive a buzz approach to be authentic. This finding is consistent with practitioners’ argument that, although a buzz approach may be effective in the short-term, once consumers recognize its selling intent, the program may have a “boomerang effect.”     

Synergies Among Advertising Channels: An Efficiency Analysis

The following article measures and compares efficiency of five advertising channels (TV, press, radio, online, and outdoor) with the help of DEA (Data Envelopment Analysis) methodology and looks for synergy effects among them. The synergy effect was indeed found in certain combinations of media while internet was found to be second least effective advertising channel, contrary to the expected.     

Identity in Franchise Systems: The Role of Franchisee Associations

Utilizing theories of identity this article presents findings from a qualitative study regarding the significant role independent franchisee associations play within franchise systems. The data reveal that successful franchisee associations help manage the inherent tension that exists between cooperation and conflict in franchise relationships. A distinctive adaptive organizational identity provides an association the capability necessary to reframe its relationship with the franchisor as either combative or cooperative in response to changes in a franchisor's identity. Challenging the views of both franchisor stability and the dyadic form that franchisee–franchisor relationships assume, behavioral insight is provided into the actual functioning of franchise systems and new avenues are suggested for theory building in franchising.     

Hispanic-Americans,Mobile Advertising and Mobile Services

The literature on marketing to Hispanics and the use of mobile-based marketing methods continues to grow. However, to our knowledge, no research has been published on Hispanic use and acceptance of mobile marketing channels; this research addresses that gap. The study investigates various aspects of mobile channel services including advertising among Hispanic-Americans and non-Hispanic-Americans. The results indicate significant differences between Hispanic-Americans and others in the usage of mobile services, satisfaction with mobile services, and attitudes toward mobile advertising, as well as within Hispanic-Americans based on their strength of ethnic identification. The managerial and theoretical implications are discussed.     

Impacts of Generic and Brand Advertising in the U.S. Potato Market

Abstract

The impacts of generic and branded advertising in the U.S. fresh potato, retail frozen potato, and potato chip markets are examined under exogenous and endogenous raw potato supply. The Almost Ideal Demand System is used to estimate the demand components. The general equilibrium elasticities derived from the complete model are used in a simulation analysis to assess the cross-commodity effects of incremental increases in advertising expenditures on equilibrium prices, quantities, revenues, and profits in each sector. The endogeneity of grower supply mitigate the impacts of advertising in the raw commodity sector and in the retail sectors.     

浅析星巴克在华连锁经营的经验与启示

星巴克是风靡全球的咖啡连锁企业,自1999年进入中国市场以来一直保持了高速的发展。星巴克在华连锁经营采取了"特许授权——控制权回收与合作经营——独资直营"的三阶段发展策略,在逐渐熟悉和积累中国市场的同时,加强对中国市场的控制。星巴克在华连锁经营的许多方法可以给我国连锁业的国际化提供经验借鉴和发展思路。     

城市电台的广告营销策略

城市电台的流动性和伴随性决定了它在广告市场上不可替代作用。本文分析了城市电台的经营现状及主要问题,通过对其目标市场特点的分析,提出了城市电台广告的五种营销策略。     

Effectiveness of Outdoor Advertising of Services

Outdoor advertisements are now routinely used by marketers of products and services as they have been found to be effective in general. However, there have been no studies testing the effectiveness of outdoor advertising of services in particular nor have there been studies comparing the effectiveness of outdoor advertisements of services with that of consumer goods. In this paper we study the effectiveness of outdoor advertisements of services and investigate the influence of few billboard and consumer related fac- tors on its effectiveness. The results show that the outdoor advertise- ments of services are very effective. Further, the recall of outdoor advertisements of services may be enhanced by providing direc- tional information when applicable and by unusual executions such as having them in black and white when most other ads are in color. Recall of outdoor advertisements of services was also found to be positively associated with respondent involvement with outdoor advertising and their attitude toward advertising.     

Informational/Transformational Appeals in Political Advertising: An Analysis of the Advertising Strategies of 2010 U.S. Gubernatorial Campaigns

This study addressed four gaps in political advertising research: (a) a better framework to replace the issue–image dichotomy, (b) differences in advertising strategies between incumbents and challengers, (c) influence of party positioning on candidate positioning in advertising, and (d) political advertising in state elections. Through a content analysis of 210 advertisements from the 2010 U.S. gubernatorial elections, it was revealed that (a) the concept of information/transformation was similar to the notion of issue/image, and the typology of informational/transformational advertising, after modification, adequately captured the complexity of political advertising; (b) the use of advertising appeals did differ between incumbents and challengers—incumbents used more transformational appeals and positive advertisements, whereas challengers used more informational appeals and negative advertisements; and (c) while the informational advertisements of the Republican candidates appeared to be substantially impacted by issues owned by their party, the influence of party positioning on candidate positioning was quite limited.     

Electronic Advertising

Abstract

With the increasing popularity of the internet and online sales as a viable way of doing business, many merchandisers have attempted to do much of their marketing by creating advertising campaigns directed at online customers. However, just as in the physical marketplaces of the real world, there are complexities to promoting online businesses. Although the ideas of prospecting, promotion, and push-pull marketing are the same, the manners in which they are approached are quite different, and different systems have begun to develop to address each of these needs. Several different campaign types have been developed. Branding campaigns, click-through campaigns, and sell-through campaigns are the ones that will be discussed here, as well as basic electronic prospecting and final advertising hosting of the campaign. The purpose of this study is to provide the managers with a systematic method for examining a more comprehensive understanding of electronic advertising, as developing the actual campaign. The implications of such examinations will be addressed, in regards to a few important issues. Costs associated with these systems will be touched on, not only monetary but also in terms of times and opportunity, and specific strategies for maintaining such a system will be discussed. Such information should be helpful in developing and maintaining a successful online advertising strategy, one that will stand the test of time.     

Beyond the Return on Advertising: Elasticity of the Return on Advertising as a Diagnostic Metric to Maximize Profit

With increased marketing expenditures, managers need to be equipped with valid and reliable measures capable of showing links between marketing investments and a firm's profitable performance. In this paper we demonstrate that traditional return on advertising (ROA) can be a misleading metric if a firm's goal is profit maximization. Then, we introduce a new diagnostic tool: the elasticity of ROA and show how this metric can help marketing managers to choose more profitable levels of advertising. This new measure has the same virtues as other traditional measures of elasticity and provides real advantages over the conventional metrics.     

Magazine Advertising: Factors Influencing the Effectiveness of Celebrity Advertising

This study analyzes the differences in celebrity effectiveness in advertisements of different styles as well as the impact of source credibility. This study uses an experimental magazine to test nine fictional advertisements for three products with unreal brands and three advertising styles. The findings show that the advertising styles that generate the greatest effectiveness differ according to the product; the celebrities do not increase effectiveness, but when the respondents recognize the celebrity, effectiveness increases; and credibility influences affective and conative measures. The work also considers how celebrity-product pairings, the existence of negative celebrity information, and the familiarity with the celebrity affect the effectiveness.     

Allocating a Promotion Budget between Advertising and Sales Contest Prizes: An Integrated Marketing Communications Perspective

This paper develops and analyzes a normative model for allocating a fixed, short-term promotion budget between product advertising and prizes of a rank-order sales contest for a homogeneous sales force when sales are driven by both personal selling effort and advertising. The model provides insights into how the optimal budget allocations vary with the synergy between advertising and selling effort, sales force size, salesperson risk-tolerance, perceived cost of effort, selling effectiveness and sales response uncertainty. The analysis highlights the need for and value of close coordination between marketing and sales management in designing a promotion program involving both advertising and sales force incentives.     

Investigating the Drivers of Consumer Acceptance and Response of SMS Advertising

This study tests five potential drivers underlying the acceptance of SMS advertising. After developing a scale to measure behavioral responses to SMS advertising, the relationships between the acceptance of SMS advertising, intention to receive SMS advertising and behavioral responses to SMS advertising are tested. A convenience sampling method was employed. Survey questionnaires were distributed across Western Australia. The return yielded 203 usable questionnaires from the respondents. Several factors emerge as significant drivers of acceptance of SMS advertising including utility of SMS advertisements, context of SMS advertisements and attitudes to advertising in general. Contrary to expectation, control over SMS advertisements did not emerge as a significant driver for acceptance of SMS advertising. Trust in advertisers and laws did not emerge as a significant driver of the acceptance of SMS advertising among Australian respondents. Advertisers who pursue consumer acceptance should strive to build utility and context considerations into their SMS campaigns. Future research opportunities include testing the drivers of SMS advertising to further investigate the impact of control and trust on acceptance of SMS advertising in other countries where the SMS advertising has not been explored yet.     

It's Not Black and White: Advertising and Race in Cultural Context

ABSTRACT

Studies in the United States have found that matching an advertising model's race to the target audience is an effective marketing strategy. However, race is a cultural construct and little research has been conducted on race and advertising effectiveness outside of the United States. This study, conducted with female consumers in Brazil, found that advertisements were not more effective when the subject and the model were of the same race. To better understand the psychological processes triggered by race, this study explored two related but distinct conditions of identification: similarity and liking. It found that in conditions of boundary permeability between groups, liking is more important than similarity in determining advertising effectiveness in the target sample. A general model is proposed.     

An Analysis of Consumer Complaints about Social Marketing Advertisements in Australia and New Zealand

While social marketers are rarely targeted in discussions of the ethics of advertising, we are increasingly becoming aware of the importance of ensuring that social marketing messages are developed and conveyed in an ethical fashion. The article reviews complaints made by members of the general public in Australia and New Zealand to the advertising regulatory bodies in those two countries for the five years 2000–2004; examining the number, type, and nature of these complaints – including the categories of advertising, and the types of appeals, which generate complaints from the general public in both countries. We find that, as for commercial advertising, there is a need for further research to explore “community standards” in relation to social marketing messages; and that there is a clear need for social marketers to consider consumer attitudes towards advertising when developing communication strategies and messages.     

An Empirical Model of Advertising Dynamics

This paper develops a model of dynamic advertising competition, and applies it to the problem of optimal advertising scheduling through time. In many industries we observe advertising “pulsing”, whereby firms systematically switch advertising on and off at a high-frequency. Hence, we observe periods of zero and non-zero advertising, as opposed to a steady level of positive advertising. Previous research has rationalized pulsing through two features of the sale response function: an S-shaped response to advertising, and long-run effects of current advertising on demand. Despite considerable evidence for advertising carry-over, existing evidence for non-convexities in the shape of the sales-response to advertising has been limited and, often, mixed. We show how both features can be included in a discrete choice based demand system and estimated using a simple partial maximum likelihood estimator. The demand estimates are then taken to the supply side, where we simulate the outcome of a dynamic game using the Markov perfect equilibrium (MPE) concept. Our objective is not to test for the specific game generating observed advertising levels. Rather, we wish to verify whether the use of pulsing (on and off) can be justified as an equilibrium advertising practice. We solve for the equilibrium using numerical dynamic programming methods. The flexibility provided by the numerical solution method allows us to improve on the existing literature, which typically considers only two competitors, and places strong restrictions on the demand models for which the supply side policies can be obtained. We estimate the demand model using data from the Frozen Entree product category. We find evidence for a threshold effect, which is qualitatively similar to the aforementioned S-shaped advertising response. We also show that the threshold is robust to functional form assumptions for the marginal impact of advertising on demand. Our estimates, which are obtained without imposing any supply side restrictions, imply that firms should indeed pulse in equilibrium. Predicted advertising in the MPE is higher, on average, than observed advertising. On average, the optimal advertising policies yield a moderate profit improvement over the profits under observed advertising.JEL Classification: L11, L66, M30 M37 R12     

The Effect of Provision Points on Generic Advertising Funding

Marketing Letters - Generic advertising promotes the general qualities of a product category and, therefore, benefits all firms in the category. Recent examples of such campaigns organized through...