Archive Page 2

Focus on Multicultural Consumer

David Burgos, Old thinking —> new thinking = multicultural mindset

Multicultural concern is critical because US population is multicultural and influencing the wider society – foods we like, politics, and so on.

3 Principles:

1. Basic advertising principles are generally valid across cultures

2. Culturally targeting you advertising tends to work better than non-targeted communications

3. didn’t have time for the 3rd one.

Comments from the floor:

The concept of multicultural is problematic because it masks the differences within groups.

Let’s accept multicultural when relevant, and let’s distinguish those areas where multicultural is the same as the wider society. For example, studies of Hispanics show that “family” is very important, but it’s also important to many other groups.

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When Advertising Works

J. Walker Smith and Bill Moult

Their study asked people about ads they saw or heard recently that had an impact on them.

3 Generalizations:

1. Recently recalled ads were more likely to have left a positive impression than if they were on digital media. “Ads in traditional media kick a$$.”

2. Prior awareness of the brand is related to positive impression of the ads. Key implication – you can improve the effectiveness of ads by doing things to help make people aware of the brands.

3. If the recent ads recalled left a positive or negative impression, respondents were likely to exhbit certain negative or positive behaviors, but not if the impression was neutral.

Have the Patterns of Advertising Elasticities Changed Since the 80s?

Began by describing market changes that may influence the patterns of elasticities observed from an earlier highly regarded meta-analysis by Assmus. Research found that they supported five findings from Assmus, and 7 new ones.

Other things being equal , advertising favors durables and growth products.

Confirms a finding talked about across the two days, that the average elasticity is .1., and that the long-term effect is about twice the short-term impact.

Clutter May Have Less Impact Than We Think

What do we know about clutter? Erica Riebe of Ehrenberg-Bass Institute for Marketing Science described the results from 2 experiments, 2 real world studies on radio and TV clutter in high and low clutter conditions. Her findings, with colleagues:

1. When more advertising is aired, audiences recall more ads in both “low clutter” and “high clutter” conditions.

2. Audiences remember a larger % of ads they are exposed to when they see/hear less ads in total. There were advantages to the low clutter situation.

3. Audiences are not better able to identify the brand when the ads are in a less cluttered position.

4. Ads recalled in high clutter are of better quality/more likable on average. “Creative is very important.”

5. Clutter has an impact, but not as large as has been suggested by earlier literature.

Six Degrees of Engagement

Mike Bloxham, Mike Holmes

Empirical Findings – less than one-third of the consumer’s day is spent in a “media only” condition.

More than half of all media exposure occurs concurrently with a non-media life activity, such as eating, change a diaper, etc.

Mike presented a very rich chart on simultaneous media usage which described how media become primary and secondary.  An interesting example is TV. When it’s a primary medium, it dominates consumption. But when another medium is added, TV takes on a secondary role, becoming a background medium. The switch from foreground to background has implications for advertising.

Triggers: Did NASA Mars Mission Lift Mars Candy Bar Sales?

The mind works in mysterious ways. During the NASA Mars mission, sales of Mars candy bars increased, said Jonah Berger of the Wharton School.  In one experiment, subjects were asked to eat a crumbly biscuit. When there was a scent of cleanser in the room, people cleaned up more. In another study in a grocery story, one day they played French music and another day they played German music.  On days when French music was played, people bought more French wine; German music led to higher sales of German wine.  Since dogs and cats are related in people’s minds, when subjects were shown pictures of dogs, they favored Puma sneakers, associated with cats.

“Seemingly irrelevant stimuli in the environment can act as triggers and impact consumer behavior,” he said. “The stimuli can activate related concepts and increase evaluation and choice. These findings have been shown across a variety of triggers.”

Priming on websites (such as different backgrounds) might activate triggers. There are also implications for testing campaigns. “We often test campaigns at a particular moment but there may be cues in the environment to remind people of the campaign,” he said. “So campaigns should not just be catchy but also cued.”

Jack Wakshlag, CRO of Turner Broadcasting, said advertisement placement on television can also take advantage of such triggers. For example, a scene in Hitch where Will Smith is having allergic reaction and seeking an antihistamine is an effective spot for a drug store ad, or a breakfast scene is a good spot for an ad for eggs (but not following a scene of an auto accident).

Robert Gunther

Raiding the “Cookie” Jar, and Does it Make Sense to Count Clicks Anyway?

Consumers who delete cookies from their computers can skew advertising data, said Gian Fulgoni, Chairman, comScore, Inc, reporting research based on their panel of more than 2 million people. About 30 percent of users delete their cookies in a month, and these deleters do so an average of four times a month. This means there are 5 different cookies for the same site in a month on one computer. “If cookie has been deleted you think you are reaching a new machine when you are really just delivering additional exposure,” Fulgoni said. This results in an overstatement of up to 2.5 times in unique visitors and an understatement of frequency.

Of course, counting clicks might not be so important after all. Fulgoni’s research found that online ads have a positive impact even without clickthroughs. There is a lift in site visitation of 4 to 6 percent from display ads, even without a click. The increase in lift over a control is 65 percent in the first week and 45.7% in weeks 1 to 4.

“The number of clicks on display ads is not an accurate predictor of the effectiveness of online display ads,” he said. “Even with no clicks or minimal clicks, online display ads can generate substantial lift in site visitation, trademark search queries and lift in both online and offline sales.”

“You don’t expect a reaction every time a print ad is viewed or a TV ad is viewed,” he said. “The only reason we have the focus on clicks is that they can be measured. The Internet measures came out of the minds of technical people, not advertising people.”

He points out that this impact of online ads beyond clicks is particularly important to recognize as advertisers are moving to performance-based contracts based on clickthroughs. “In these economically stressful times, pay for performance deals are becoming more common. If you want to pay on the basis of clicks, it may be a great deal for the advertiser but not so great for the publisher.”

Robert Gunther