Pretesting TV Commercials: Methods,Measures, and Changing Agency Roles

Abstract

Research directors with the largest 200 agencies and advertising executives with the largest 200 advertisers were surveyed to examine their views on the current state of TV commercial pretesting. One-hundred and one agency researchers and 89 ad executives returned completed questionnaires (adjusted response rates of 52% and 49.7%), which asked them 23 closed-ended questions about (1) the methods and measures used to pretest TV commercial executions; (2) the perceived role of the agency versus the client in the selection of pretest methods; and (3) perceived changes in the role of the agency research department in TV commercial pretest research. Of those responding, 18 percent of the agency researchers and 19 percent of the advertising executives indicated that their agencies do not pretest TV commercials for assigned brands. Based on the responses of the 83 agency researchers and 72 advertising executives whose agencies pretest commercial executions, the findings suggest that the role of the agency research department has changed over the past 10 years. Most notably, there has been a proliferation in the use of qualitative methods and measures in TV commercial pretest research.     

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.     

How to achieve true integration: the impact of integrated marketing communication on the client/agency relationship

ABSTRACT

Reports from the advertising industry suggest that the pressure to create effective integrated campaigns across the ever-increasing mix of paid, owned and earned media is putting an enormous strain on client/agency relationships. This research identifies the main challenges that an Integrated Marketing Communication (IMC) approach places on this relationship and thereby advances the IMC literature by examining the practical challenges of implementation. Six key issues, developed from academic and industry sources, are presented to advertising experts, through a Delphi study, to stimulate debate and identify areas of agreement. The findings are brought together in a model which presents three main areas that need to be addressed, along with specific recommendations. These topics include the need for clients to provide stronger leadership in defining agency roles and responsibilities, more transparent remuneration systems to encourage teamwork across agencies as well as individual input and an increased emphasis on the strategic contribution from agencies.     

Advertising Agency Philosophies and Employee Risk Taking

Abstract

On the basis of an exploratory survey of executives from a cross-section of U.S. advertising agencies, this article examines the relationship between agency creative philosophies and agent creative risk taking. The natures of both creative risk and agency philosophy are discussed. Multiple measures of risk taking are applied and the findings suggest that agency executives working in agencies with clear identities are more likely to take risks than are those in agencies without such identities (hybrid philosophies), but not for all measures of risk. The extent to which the size of client plays a role also is assessed. After an assessment of the findings, limitations and suggestions for further research are discussed.     

Investigating agency–client relationships in the Polish advertising industry

This paper explores selection and retention factors as perceived among agencies and clients operating in the Polish advertising industry. Initially, a broad review of advertising and marketing literature is presented in the context of those variables perceived to be important for (a) selecting/evaluating ad agencies, and (b) maintaining client loyalty and client retention. Two ad agencies and two advertisers in Poland were approached in order to explore and evaluate the variables in more depth, and as a result 15 key variables emerged that became the focus for the study. A questionnaire was designed and a postal survey was later administered to advertisers and agencies with the intentions of obtaining the views of both parties. Emerging findings of the study indicate that clients tend to focus on sales pitch and factors relating to past performance in recruiting an agency. Results also reveal that there was a close consensus among agencies and their clients concerning the relative importance of retention factors such as quality of service and customer care attributes.     

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.     

Agency / Client Relationshipsas Seen by Influential on Both Sides

Abstract

This article concerns a subject of interest and concern to both advertising agency executives and their clients; i.e., how the two of them feel about each other and themselves in terms of the agency/client relation-ship. These perceptions and feelings were gleaned from a survey of agency leaders and major users of agency services. Based on the findings, some suggestions and directions are offered for making the agency/client dyad more harmonious.     

Standardized Multinational Advertising: The Influencing Factors

Abstract

Advertising for multinational products uses standardization most often in strategy, less often in executions, and least often in language. This study's international sample of advertising agency executives considers creative impact the most important and pressure (from time, client, etc.) the least important reason to use some form of standardized advertising. Despite this, it is views on client pressure which explain most of the variance in views on future use of standardization. That is, those respondents who believe that client pressure is increasing also believe that overall use of standardization will increase. A separate sample of agency executives reinforced some of these findings, particularly the role of the successful, big idea and client pressure in making the decision to standardize. Copy research also plays a role in standardization recommendations, but it is not used as extensively as might be necessary.     

Reducing Disconnects in the Design Agency-Client Relationship

Abstract

Account turnover for smaller agencies, whether an advertising, marketing research or design agency, is a serious financial drain that absorbs disproportionate CRM and managerial energies. Using a web-based survey developed from in-depth interviews, this empirical study investigates the extent to which smaller graphic design agencies follow the classical decision-making “process” when producing a creative product (an advertisement; a new package design, etc.). The global hypothesis is that the greater the degree of adherence to the steps in the management of the ideal relationship management “process” the greater the perceived satisfaction will be with their clients. Results of the analysis partially support the hypothesis and provide valuable directions for future studies.     

U.S. Advertising Agency Productivity

Advertising agency growth through mergers and ac- quisitions became a common strategy in the 1980s, pdculady among the largest finns in the indusby, yet little research has examined ils effects. In this study, U.S. advertising agency size and mergers and acquisitions are related to agency productivity. Size was found to be a clear advantage for advertising agencies, as larger firms were consis- tently more productive in both b i g s and gross income per em- ployee. The postmerger performance of merging and acquiring ad- vertising agencies was worse for most of those firms than their prior Formance when compared to firms of similar size, indicating that tlus strategy for growth tends to be less successful in the short-run.     

Advertising industry evolution: agency creativity,fluid teams and diversity. An exploratory investigation

ABSTRACT

The advertising industry is in a state of flux, where the agency model is evolving alongside todays’ fast paced digital environment. This paper reviews the drivers of change in the industry and explores how creative advertising agencies are evolving and developing their team resources to improve the creative product using the resource based view (RBV) as a theoretical lens. The study adopted a qualitative approach using a key informant strategy with 16 interviews with Creative Directors, Chief Executive Officer’s and Heads of Planning and Account Directors. The findings suggest that agencies who embrace team functional diversity, include external stakeholders and develop team fluidity as a dynamic capability will enhance agency creativity.     

Exporting and Firm Size

Abstract

This paper examines the extent to which small U.S.-based exporters experience problems and difficulties in their export operations not faced by larger U.S.-based exporters. Subsequently, we focus upon the differences between small and large firms with respect to three general areas: the perceived difficulty of various export activities; the perceived helpfulness of various agencies/organizations to export operations; the perceived helpfulness of various actions the federal government has taken or could take with regard to exporting. In areas where we have found significant large-versus small-firm differences we try to provide explanations. Finally, we offer both general and specific recommendations directed at overcoming the problems we have identified in order to facilitate exporting, particularly by small firms.     

Investment in online advertising and return on sales: Does it pay to outsource the services to an advertising agency?

Abstract

The effect of investing in online advertising on a firm’s financial outcomes can depend on whether or not the development and implementation of advertising campaigns are managed by advertising agencies. Agencies may have experienced professionals or workload to perform these jobs, but the costs are greater. This paper aims to investigate the effects of investments in digital marketing on the financial outcome of a company’s services, comparing whether or not it is outsourced to advertising agencies. The secondary data relates to services advertised and marketed by a firm. We tested the possible moderating effect of outsourcing the service in the relationship between investment in online advertising (Google and Facebook) and return on sales (profit margin), by controlling the effect of covariates. Through four regression analyses, the results showed that outsourcing the service moderates the relationship. Specifically, the higher the amount of advertising investment, the more it pays to outsource the service to an advertising agency in order to generate greater profit margin. But with a low investment value, it does not pay to outsource. This study helps to identify situations in which it pays to outsource digital marketing services to an advertising agency.     

The Role of the Advertising Agency in the Cultural Message Content of Advertisements: A Comparison of the Middle East and the United States

ABSTRACT

This study compared responses of advertising agencies located in the Middle East and the United States to an email survey examining their approach in designing advertisements. The survey examined whether the advertising agency incorporated area-specific cultural values and advertising appeals in the execution of their advertisements. Results indicate that indeed advertising agencies do use, or at least report to use, different cultural values and advertising appeals. Advertising agencies in the Middle East tend to focus more on filial obedience, customs and traditions, loyalty to one's group, honor, and patience. In addition, agencies in the Middle East reported that they tended to portray women in a more modest fashion than their counterparts in the United States.     

The advertising creative process: A study of UK agencies

Advertising agencies are hired to develop creative advertising for their clients. This paper explores the advertising creative process used by agencies when developing new creative work. Using in-depth interviews with 21 agency practitioners in the UK this study examines the stages that take place within the advertising creative process. Findings suggest the process is made up of a series of sequentially linked stages and illustrate how agencies validate advertising creative during development. The study provides insight into how agencies customise the process and identifies that agencies have different approaches to the level of client involvement. Implications for practitioners are discussed and areas for future research identified.     

Competitive Orientations in Professional Services

ABSTRACT

This article presents the results of a study on the competitive orientations of three types of professional service firms: advertising agencies, market research agencies and management consultants. Similarities as well as some differences in orientations were identified among the three groups. Advertising agencies were found to have the strongest competitive orientation. The study also found that firms with higher levels of competitive orientations also had better internal integration and control of the marketing function.     

Boundary spanner turnover in professional services: Exploring the outcomes of client retention strategies

Abstract

Studies suggest that the termination of the interpersonal relationship between boundary spanners at buyer and seller firms can have a damaging effect on the inter organisational relationship. Few studies have addressed this issue in detail, but those that do, advise supplier firms to implement strategies such as service teams and boundary spanner rotation to lessen the negative effects of boundary spanner turnover. By creating multiple bonds between the two firms, dispersing client-specific knowledge widely throughout the supplier firm, and preventing the development of a close bond between buyer and seller boundary spanners, individual interpersonal relationships become less important. However, a review of relationship literature on trust, commitment, social bonds, and knowledge suggests the potential for negative outcomes from the implementation of the strategies. Using case studies and one-to-one interviews with design buyers and their agencies, this paper explores the outcomes of the two strategies, and the contexts in which these outcomes occur. Adopting a critical realist approach, findings are presented in the form of context–mechanism–outcome models. Agency size, agency culture, client experience, and boundary-spanner autonomy are amongst the contexts that influence the outcome of strategy implementation.     

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.     

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.     

William L. Rivers and William T. Slater,Aspen Handbook on the Media,Aspen Institute Program on Communications and Society,Palo Alto,California, 1975, 182 pp.

Abstract

A study of the use of humor in U.S. and U.K. television advertising was developed by surveying ad agency executives in the two countries and then by conducting a content analysis of television commercials. The survey of executives revealed a more accepting attitude toward the use of humor, and a broader view of the potential uses of humor among the British agencies. The content analysis showed a significant increase in the use of humor in the U.S. since the last major benchmark study, but less humor than in the U.K. sample of advertising. An examination of the content analysis data using the Foote, Cone and Belding (FCB) planning matrix revealed a situational use of humor in both countries, with humor most often used with low involvement/ feeling products and least often used with high involvement/feeling and thinking products. For the most part, the views of agency executives reflect the incidence and use of humor in their respective countries.