The ARF

Ad-Spend Cues, Deepfakes/A.I., Badass Endorsers and Influencer KPIs

Posted: July 11, 2023

At this Insights Studio, authors from three different continents showcase their recently published work—including the JAR Best Paper 2022 on how advertising expenditures drive consumers’ perceptions of ad and brand quality. Also featured are studies on deepfakes and AI reshaping the advertising industry, the success of using product endorsers who are actors known for roles portraying despicable characters, and KPI patterns of social media influencers across several platforms. Talking points in the concluding Q&A span the future of AI in advertising and influencer marketing, machine-driven decisions for choosing endorsers, and factors (product- and economic-related) affecting consumer perceptions of quality in TV ads and engagement in user-generated content.

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This is When Diversity in TV Ads Drives Purchase Intent

Promoting diversity through creative content is the right thing to do and can be highly beneficial for brands if done correctly. It’s important for the context to be in sync with the changing context of public opinion. The study featured in this latest MSI white paper, found that Black actors’ share of ads can increase purchase intent, but only when the ads were processed peripherally. If the ad’s aim was to increase the public’s attention to inequality, this could actually inhibit the effect.

Past Event Highlights
Article

Ad-Spend Cues, Deepfakes/A.I., Badass Endorsers and Influencer KPIs

JAR Insights Studio

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Audience Trends for Products With Supply Constraints

Posted: June 20, 2023

IRI’s Michael Tscherwinski addressed the challenges marketers are facing due to supply-constraints and provided a best-practices playbook for unlocking opportunities. IRI’s 2022 outlook on product availability predicts continued challenges. Inflation, supply chain issues, as well as the war in the Ukraine, impact the operations of CPG companies. Category out-of-stock conditions are widespread, and many CPGs are pausing media. However, Procter & Gamble, one of the largest advertisers in the world, stated that it would continue to invest in marketing.

Connected Television: Engaging Consumers with Enhanced Ad Formats

Posted: June 5, 2023

Tony Marlow of LG Ad solutions examined the effect of CTV on viewers and marketers looking to connect with audiences in a meaningful way, particularly with the advent of challenges presented by second-screen viewing. In addition to second-screen viewing, advertisers have also been stymied by new privacy regulations reducing the efficacy of targeting. In his presentation, Tony remarked on the rapid change in viewership from cable TV, subscription TV and ad-supported TV. Tony explored enhanced ads leveraged through CTV by presenting several pieces of “thought leadership research” which indicated the impact these ads have on engagement between advertisers and consumers. The research exemplified how enhanced ads can connect with consumers via CTV through their devices, to make the act of second-screening more productive by bringing devices and television ads together. Enhanced ads were demonstrated through the inclusion of QR codes, local extension, weather-driven and dynamic in nature (i.e., countdown to a game, etc.).

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How Do Consumers Respond to Gender-based Pricing?

Markets are growing increasingly transparent. While one of the easiest ways to segment customers is by gender, pricing differences based on this factor are becoming more apparent and harder to justify. Women perceive such pricing discrimination for comparable product as unfair. This reduces purchase intent and their liking of and appreciation for the brand, while men tend to rationalize such differences as justified by product attributes (e.g., dry cleaning a “blouse” versus a “dress shirt”).

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Here is When Promotions Work for High-Involvement Products

Promotions should be crafted toward the shopper’s mindset to be most effective and enhance the shopping experience. For routine purchases of low-involvement product categories, shoppers are often in a “deliberative mindset,” and so they respond well to general promotions. Brands in high involvement categories, however, must engage shoppers in an “implemental mindset.” To be effective, promotions must be equally focused and specific.

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Targets & Segments
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Explaining Algorithmic Decisions to Ensure Perceived Fairness

What kind of interface does your ecommerce website or app use? How does that affect the customer experience? These are important questions because how your purchase interface is framed affects the customer experience along the entire decision journey, according to this MSI working paper. “Quantity-integrated” formats, where the customer indicates simultaneously whether and how much to buy of something, are more profitable than sequential formats, where the customer is first asked for their purchase decision, followed by a specific quantity.

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Audience Trends for Products with Supply Constraints

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Creative & Branded Content
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What a Product’s Weight Conveys to Consumers

Marketing Science Institute

A product’s shape, packaging or logo contributes to consumer understanding and reactions to that product, previous research has found. But what impression does the perceived weight of a product convey and how can this be used for advertising and marketing purposes? Researchers Priya Raghubir, Lu Yang and Dengfeng Yan looked into this and discovered that consumers use a stability heuristic for weight judgements. Shorter, broader objects are judged to be heavier and thus are considered more stable. And when it comes to food items, weight also plays on such things as calorie assessment.