The Effect of Advertising and Display
East R. The effect of advertising and display. – Boston / Dortrecht / New York / London : Kluwer Academic Publishers, 2003. – 111 p.
What Wears Out?
A Model of Advertising Effect
Carryover Sales Effects of Advertising
Problems with Purchase Reinforcement
Word of Mouth
Using Word of Mouth
Half-Lives in Frequent-Purchase Markets
Long-Term Decay Effects
Segments to Target
Heavy and Light Television Viewers
Heavy and Light Buyers
Do Some Brands Get More From Their Advertising?
CHAPTER 4: HOW DO INDIVIDUALS PROCESS ADVERTISING?
Hierarchical Models of Ad Response
The Awareness-Trial-Reinforcement (ATR) Model
No Role for Conversion?
Attention to the Ad
Selective Attention by Buyers of the Advertised Brand
Advertising Awareness and Understanding
Attitude to the Brand
Attitude to the Ad
The Effect of Mere Exposure
Positive and Negative Information
Psychological Research on Persuasion
Arguing with the Ad
The Elaboration Likelihood Model (ELM)
CHAPTER 5: ADVERTISING AT THE POINT OF SALE
The Delayed Effect Of Advertising
Reviving the Ad Effect
Types of Purchase Context
The Rossiter-Percy Communication Model
The Response to Price
\local Advertising, Price Cuts and In-Store Display
CHAPTER 6: ONLINE ADVERTISING
The Internet as an A Channel
Types of Internet Advertising
Paying for Web Ads
Keywords and Key Sites
Real-Time Evaluation of Websites
Are We Taking Sufficient Account of Carryover Effects?
Do We Change Copy Often Enough?
Using Evidence on the Durability and Decay of Advertising?
How Should We Use Different Media?
Are We Using The Power of Display Effectively?
What Is the Potential of Internet Advertising?
Do We Target the Right Loyalty Segments?
Advertising is arguably the most interesting of all the business fields. It requires a range of human skills that are both creative and practical and when successful, can have a strong effect on business performance. How does advertising work? Despite its importance, this question gets limited attention in many textbooks on marketing communications. Such books address the goals and methods of agencies and their clients, the practice of copywriting integrated marketing communications, the choice of media, advertising cases' business and legal constraints etc, but the evidence for the effects of advertising and the processes involved in producing these effects are usually given little space.
This is a pity. Explaining how advertising works is difficult but both students and practitioners want to know about the methods of research, the debates and uncertainties, and the more solid conclusions now available about the effects of advertising. And we certainly have some findings to report There has been a steady stream of research from both academics and practitioners and much of this work is relevant to business practice.
This book cannot be comprehensive and is not intended to be. Rather, it addresses the gaps in the treatments of conventional texts. First, I have tried to cover both the academic and practitioner work that is relevant; too often, one is ignored by exponents of the other. This means that, in addition to conventional academic sources, I have used papers from Admap and cases from the Advertising Works series in the UK and Effective Advertising in Australia. Second, I have given detailed consideration to the psychological mechanisms that may explain observed ad effects. Third, I have addressed the long-term sales effects of advertising, which may be even stronger than the primary effects. Here, I have given particular attention to the social processes that are involved. Fourth, I have examined the way in which behavior may be affected at the point of purchase since it is here that the effects of media advertising may be reawakened. There is evidence of strong effects on sales from point-of-sale material and we need to understand how these effects may come about. Fifth, I have tried to cover important recent developments, including the ways online advertising can work
This book does not provide a full discussion of media effects; TV advertising is emphasized because of the good research in this field and Internet advertising is examined because of the interest in this new medium, Also, the treatment of segmentation issues is limited to those based on loyalty, weight of television viewing, and weight of brand purchase,
Advertising uses many different types of appeal and a range of media to achieve a variety of goals. Different ads for the same brand can have markedly different effects and the same ad can produce different effects in different audience segments. This seems a recipe for chaos but, as our knowledge has expanded, a more coherent account of the consumer response to advertising has emerged, I have tried to map out what we know, but I also indicate the uncertainties that remain and suggest what may apply when we lack good evidence, I hope that the difference between claims based on evidence and suggestions based on judgment is clear in the text,
This book is relevant to two groups. In the business community, it should help users and practitioners of advertising who seek a more research-based understanding of the subject, In the academic community, it should meet the needs of more advanced students (first-degree specialists and post-graduates). Over the years, I have taught a large number of such people, I have been impressed by their skill and their quest for greater knowledge and this book is written with them in mind.
Plan of the Book
□ Chapter 1 is concerned with the nature of effective advertising and shows how ads may increase sales, raise margins and improve business efficiency,
□ Chapter 2 examines how sales relate to the number and concentration of ad exposures and to the implications of this evidence for the scheduling of ads, In this Chapter we look at theories about how a number of ad exposures may act together,
□ Chapter 3 extends the evidence on ad outcomes by assessing how the effect of a particular ad wears out with repeated exposure and how any ad effect that has been established in the audience decays over time. A model of how ads work is introduced. In this model ads act via two routes, primary and carryover, The primary route changes behavior either by thoughtful processes or by automatic mechanisms. The carryover route is longer term and produces behavioral effects as a result of persisting changes in the buyer's thinking, learning from purchase, distribution changes, and social influence. In this Chapter, we also look at the levels of response to advertising shown by different audience segments.
□ Chapter 4 is concerned with more detailed explanations of the role of reflective processes and automatic mechanisms in inducing behavioral change. We examine the conditions that secure attention and look at the evidence on the mechanisms that may be used to process advertising.
□ Chapter 5 deals with the interplay between ad content and purchase context. Many sales take place in a different time and place from the advertising. This focuses attention on the trace that is left in individuals by media advertising and its reactivation at the point of purchase. Some advertising will be more effective under specific purchase conditions, and we try to show how product, message and media can be matched to advantage. The joint effect of price, display and local advertising are briefly reviewed.
□ Chapter 6 deals briefly with issues raised by online advertising, particularly its direct and indirect effects and the means used to serve ads that are related to the interests of the recipients,
In a short Postscript, some applications of this work are highlighted.
Chapter 1 WHAT IS EFFECTIVE ADVERTISING?
What must be influenced if ads are to be effective? Ultimately, this is behavior. The behavior that most people focus on is buying but this has two aspects: buying more and buying at higher prices. In addition, advertising can affect the operations of a company so that internal efficiencies are made and costs are reduced.
Ads succeed by affecting behavior. In social contexts, ads may reduce accidents, increase voting rates, encourage passengers to wear seatbelts, promote healthy eating, and help people to stop smoking. In the commercial setting, advertising works on activities such as purchasing, renting and subscribing. Sometimes the behavior is a preliminary to purchase such as going to a car showroom or making a telephone inquiry. Advertising campaigns vary in effectiveness, i.e. how much change they achieve, and also in efficiency, i.e. how much effect they achieve for a given cost. A useful discussion of effectiveness and efficiency in advertising is provided by Ambler and Broadbent (2000).
In the commercial arena, three particular outcomes may be derived from advertising. These are that:
Buyers pay more per unit and thus increase the profit on a sale.
Buyers buy more than they would have done without the advertising. This occurs either because more people buy or because existing buyers buy more. It can also occur when advertising holds back a sales decline that would otherwise have happened.
Costs are reduced.
Examples of these three outcomes are examined in more detail in later sections. The effect of ads on margins, sales and costs is often achieved by assisting other aspects of the marketing mix, for example, when ads amplify the effect of discounts. Ad effects can occur in a roundabout manner. In particular, advertising may:
Induce word-of-mouth and media comment that eventually results in purchase…"
The full text of the book can be found at bookstores, e-bookstores and libraries.
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