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Do Emotions in Advertising Drive Sales?: Use of facial coding to understand the relation between emotional ads and sales effectiveness
Daniel McDuff, Rana El Kaliouby, Evan Kodra and Laurent Larguinet, ESOMAR, Congress, Istanbul, September 2013
This paper examines the impact of ads that evoke emotions and are entertaining or are memorable on product sales.
This paper examines the impact of ads that evoke emotions and are entertaining or are memorable on product sales. Research was conducted to quantitatively measure tacit emotional response to ads through facial recognition, with this information then matched to sales data. Data was collected for over 140 ads in four countries and used to identify the emotional trajectories that are most predictive of sales. It was found that amusement was the strongest predictor of sales. The findings of the research are explained and the ways in which the methods used could be applied to other areas of market research discussed.
Is the Multi-Platform Whole More Powerful Than Its Separate Parts? Measuring the Sales Effects of Cross-Media Advertising
Jennifer Taylor, Rachel Kennedy, Colin McDonald, Laurent Larguinat, Yassine El Ouarzazi, and Nassim Haddad, Journal of Advertising Research, Vol. 53, No. 2, 2013, pp. 200-211
Cross-media campaigns are becoming a norm, yet there is a lack of knowledge on how they impact sales.
Cross-media campaigns are becoming a norm, yet there is a lack of knowledge on how they impact sales. This paper documents the sales response to cross-media campaigns and finds that, when online advertising is added to a television campaign, the extra reach achieved is primarily duplicated. Regularly a single television exposure stimulates sales among those exposed, with online advertising demonstrating a similar yet less consistent response. We do not find evidence of a synergy in sales impact, where the sum effect of exposure to both television and online is greater than the parts. We highlight challenges with such single-source research.
Stop Flawed Marketing Mix Models From Stunting Growth
David Hoo and Michael von Gonten, ARF Experiential Learning, Audience Measurement 8.0, 2013
This paper argues that marketing mix models are not useful, and that the mix models currently in use, either the original format or the newer, VAR style, systematically understate the true effects of advertising.
This paper argues that marketing mix models are not useful, and that the mix models currently in use, either the original format or the newer, VAR style, systematically understate the true effects of advertising. Mix models are regression models and, as such, are incapable of providing truly causal evidence as to the effects of advertising and promotion. This leads marketers to undervalue the real effects of advertising and to reduce their advertising spending, reallocating those funds to price promotion. Such reductions in expenditure have the unintended effect of stunting sustainable growth and eroding the brand equity built by advertising. Moreover, reducing adspend to maximise efficiency is a vicious circle; on the other hand, effective advertising is an engine of growth.
The Economic Value of Celebrity Endorsements
Anita Elberse and Jeroen Verleun, Journal of Advertising Research, Vol. 52, No. 2, 2012, pp. 149-165
What is the pay-off to enlisting celebrity endorsers? Although effects on stock returns are relatively well documented, little is known about any impact on sales—arguably a metric of more direct importance to advertising practitioners.
What is the pay-off to enlisting celebrity endorsers? Although effects on stock returns are relatively well documented, little is known about any impact on sales—arguably a metric of more direct importance to advertising practitioners. This study of athlete endorsements finds there is a positive pay-off to a firm’s decision to sign an endorser, and that endorsements are associated with increasing sales in an absolute sense and relative to competing brands. Furthermore, sales and stock returns jump noticeably with each major achievement by the athlete. However, whereas stock-return effects are relatively constant, sales effects exhibit decreasing returns over time. Implications for practitioners are outlined.
From customer loyalty to social advocacy: Leveraging loyalty data and shopper insights to optimize social media engagement and drive in-store sales
Matthew Keylock and Malcolm Faulds, ARF Experiential Learning, Audience Measurement 7.0, 2012
This paper from dunnhumby and BzzAgent highlights how shopper insights can improve the effectiveness of social marketing programs.
This paper from dunnhumby and BzzAgent highlights how shopper insights can improve the effectiveness of social marketing programs. The study utilised anonymous household-level shopping data from retailer loyalty cards by inviting shoppers to link their social media profiles to their loyalty card purchase profiles. These consumers received product samples, pass-along offers and other things designed to spread recommendations both online and in person. The study found that advocacy programs that leverage both shopper and social data increase in-store sales of a brand by an average of 8% and the sales lift sustains at around 4% for six months after the end of the program. The authors also recommend that advocacy programs should target consumers based on a combination of shopper data, level of social activity and demographics.
Optimizing in-store trade promotion and television for maximum short-term and long-term return on investment
Bill Harvey, Terese Herbig and Matthew Keylock, ARF Experiential Learning, Re:think conference, 2012
This paper describes how dunnhumbyUSA and TRA apply a non-modelled methodology for optimising the mix of TV advertising and in-store marketing.
This paper describes how dunnhumbyUSA and TRA apply a non-modelled methodology for optimising the mix of TV advertising and in-store marketing. Their approach uses purchase behaviour data from 60m US households and second-by-second measurement of TV viewing habits from more than 2m households. The research quantifies the synergy of the three strongest drivers of positive brand purchase change - pricing, in-store display and television advertising - by focusing on heavily-advertised CPG brands within the toothpaste, yoghurt and cereal categories. The report provides marketers with examples of the types of findings this single-source, household-level methodology can produce. One of the findings was that the simulataneous use of TV advertising, in-store display and a temporary price reduction maximises the positive impact on brand sales, more than 11 times the sales effect of TV advertising alone.
Using supermarket loyalty card data to analyse the impact of promotions
Melanie Felgate, Andrew Fearne, Salvatore DiFalco and Marian Garcia Martinez, International Journal of Market Research, Vol. 54, No. 2, 2012, pp. 221-240
The aim of this paper is to show how supermarket loyalty card data from a panel of over 1.4 million shoppers can be used to analyse the effect of price promotions in a way which can bring significant advantages to retailers and manufacturers when making promotional decisions.
The aim of this paper is to show how supermarket loyalty card data from a panel of over 1.4 million shoppers can be used to analyse the effect of price promotions in a way which can bring significant advantages to retailers and manufacturers when making promotional decisions. The paper demonstrates the significant advantages that loyalty card data can bring to enhance our understanding of promotions, compared to traditional scanner and panel datasets. Regression analysis is used to compare the effects of different promotional mechanics upon different tiers of product across the fresh beef category in Tesco, using both scanner data and loyalty card data. The results show that using loyalty card data, which enables us to moderate for specific shopper characteristics, produces more statistically significant results and provides a more detailed picture of how promotions influence sales.
How Emotional Tugs Trump Rational Pushes: The Time Has Come to Abandon a 100-Year-Old Advertising Model
Orlando Wood, Journal of Advertising Research, Vol. 52, No. 1, 2012, pp. 31-39
This paper proposes a new model for how advertising works and how it should be measured. It seeks to demonstrate the importance of measuring emotional response to advertising and illustrates the flaws in conventional pre-testing measures of persuasion, cut-through, and message receipt.
This paper proposes a new model for how advertising works and how it should be measured. It seeks to demonstrate the importance of measuring emotional response to advertising and illustrates the flaws in conventional pre-testing measures of persuasion, cut-through, and message receipt. Drawing on empirical data, it shows how an emotional model of advertising and emotional measurement can lead to greater effectiveness and efficiency and to better planning and decision making.
Research on Advertising in a Recession: A Critical Review and Synthesis
Gerard J Tellis and Kethan Tellis , Journal of Advertising Research, Vol. 49, No. 3, September 2009, pp. 304-327
Based on an extensive review of research on advertising in a recession, the authors identify over 40 related studies.
Based on an extensive review of research on advertising in a recession, the authors identify over 40 related studies. Ten of these studies involve original empirical analyses of cross-sectional or time series data. The rest are theoretical discussions, reviews, cases, or opinions. The empirical studies may be classified into four groups based on the dependent variable analyzed: (1) sensitivity of advertising expenditures to the economy, (2) sensitivity of brand versus private-label share to economic expansions and contractions, (3) impact of advertising in a recession to sales or market share during or after a recession, (4) impact of advertising in a recession to profits during and after the recession. The authors critically review these studies and synthesize the major findings.
Generalizations about Advertising Effectiveness in Markets
Gerard J. Tellis, Journal of Advertising Research, Vol. 49, No. 2, June 2009, pp. 240-245
Based on over 260 estimates, the mean elasticity of sales or market share to advertising is 0.1 percent.
Based on over 260 estimates, the mean elasticity of sales or market share to advertising is 0.1 percent. Another 450 field experiments suggest that changes in media, product, target segments, advertising scheduling, and advertising content are more likely to yield changes in sales than do changes in advertising weight. Numerous other studies suggest that advertising wear-in does not exist or occurs quite rapidly while advertising wear-out occurs more slowly. Details of and differences in these results by condition are discussed in this article. From an issue of JAR devoted to `empirical generalisations’: the papers were first presented at a conference at the Wharton School, University of Pennsylvania in December 2008.
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