Advertising and profit growth
Tim Ambler, London Business School, examines the concept of brand equity in the context of advertising research, and reviews how advertising drives profit growth
Modern advertisers are in thrall to some strange ideas, so old that we have ceased to notice. AIDA, for example, is expecting a telegram from the Queen. The first of the persuasive hierarchy models of advertising, E. St Elmo Lewis originally applied it in 1898. He later realised that experience had been omitted: Satisfaction was added to Attention Interest Desire Action, but AIDAS never caught on. Lewis was years ahead: experience is far more important to brand choice than advertising. Despite that, the hierarchy models, in one form or another, continue to dominate advertising thinking, especially in the US.