Ad Effectiveness & ROI

Unpacking Ad Effectiveness: The Roles of Media, Creativity, Branding, Targeting and Premium vs. UGC Content

  • ARF ORIGINAL RESEARCH

The ARF and MediaScience have conducted a comprehensive study to understand the relative contributions of media platforms, creative quality, brand recognition and targeting, as well as the impact of premium versus user-generated content (UGC) on overall advertising effectiveness. Using eye tracking, neurometric data and post-exposure surveys, the study examined ad effectiveness through consumer recall, recognition, brand favorability and purchase intent. Most prior research based on CPG sales concludes that creative is more dominant in the success of a campaign. This study, based on multiple categories and biometric and neuro measures concludes that media is just as important.

The study confirms key findings from prior research, such as the importance of media platforms (with podcasts and TV excelling in recall), high-quality creative improving sentiment, and targeted advertising enhancing engagement. It also supports the role of digital UGC in driving purchase intent due to its relatability. However, it challenges existing assumptions by showing no significant biometric differences between high- and standard-quality digital creative. Notably, UGC outperformed premium digital content in purchase intent and likeability, especially for unknown brands—a finding specific to mobile platforms where the comparison was conducted. These insights reflect shifting dynamics in ad effectiveness and the growing role of relatability and platform-specific optimization.

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A Peek Behind the Curtain at Raising the Volume on Sonic Branding

  • By Alexander Cammy, Creative Council Young Pros Officer

On November 7, the ARF Creative Council held an immersive event exploring the powerful role of sound in branding. At this event, the Council unveiled its thoroughly-researched white paper on sonic branding. Members of the Council provided a preview of the white paper. They covered what sonic branding is, how it has evolved, how it works at a neurological level, how leading brands have successfully used sound to build and reinforce brand memories, and how brands can get started on their sonic branding. Practitioners of sonic branding revealed how they go about creating sonic signatures and even played a possible sonic signature of the ARF. The event began with a quiz in which 10 audio clips were played and the audience was asked to identify the brand associated with each sound.

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Circular Economy Framing Increases the Effectiveness of Sustainability Claims

This study explores how circular economy framing can enhance the effectiveness of sustainability claims by making them more concrete and understandable for consumers. The research suggests that using circular economy metaphors can reduce the perceived abstractness of sustainability claims, thereby increasing consumers' willingness to purchase sustainable products. The study conducted three experiments to test this hypothesis and found that circular economy framing significantly improves the concreteness of sustainability messages and boosts consumer engagement with sustainable products. The findings offer valuable insights for marketers and advertisers on how to frame sustainability claims to enhance their effectiveness. By leveraging the circular economy concept, businesses can make their sustainability messages more relatable and compelling, ultimately driving a higher adoption of sustainable products.

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Retail Media Networks: Growth, Opportunities and Challenges

  • Knowledge at Hand; CMO Briefs

Retail media networks (RMNs) are rapidly becoming one of the largest and fastest-growing ad verticals in the U.S., offering personalized ads across retailers’ ecosystems. These networks also provide brands with targeted ads and higher conversion rates, while retailers gain new revenue streams and enhanced shopping experiences.

Despite staggering growth, RMNs face many challenges as they continue to grow globally, including a lack of standardization across networks, measurement difficulties, rising costs and complexity. Agencies face additional issues, such as teams lacking the necessary expertise to help clients navigate RMNs.

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How Offline Versus Online Promotional Media Affects Consumer Response

  • JOURNAL OF ADVERTISING RESEARCH

In the digital age, marketers are increasingly utilizing online sales promotions. However, this study hypothesized that offline (versus online) media more effectively induce consumer behavioral responses to sales promotion. Field and lab experiments supported this hypothesis, showing that sending print (versus online) coupons increased redemption behavior. This effect was mediated by cognitive engagement with the content and was more pronounced among consumers with low (versus high) brand attachment. These results were consistently replicated across different product categories.

This study provides behavior-based evidence supporting the effectiveness of offline media and highlights brand attachment as a new moderator of the effect. The findings caution against marketers’ overdependence on online sales promotion and suggest that offline promotional media can enhance consumers’ cognitive engagement with the content, leading to better behavioral outcomes.

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Cause-Related Marketing Messages that are Customer-Centric have Greater Impact

  • JOURNAL OF ADVERTISING RESEARCH

This study explores the effectiveness of cause-related marketing and how brands can enhance consumer trust by attributing their charitable actions to customers rather than the brand itself. The research shows that when brands share the credit for good deeds with their customers, it reduces perceptions of bragging and increases brand trust. This beneficial effect is particularly significant for brands with high integrity.

The findings are based on three studies involving American adults, which demonstrate that attributing donations to customers (versus the brand) reduces perceived bragging and increases donation intentions and brand trust. The study highlights the importance of brand integrity in moderating these effects.

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How the Deliberate Use of Slurs Impacts Prosocial Advertising

  • JOURNAL OF ADVERTISING RESEARCH

When a slur is used, people hear it. Usually, it is either morally wrong or used in a negative way. However, certain nonprofit organizations have turned these words into tools to grab attention in provocative prosocial advertising campaigns. This study examines how such sexist and homophobic slurs can influence consumer engagement and cognitive elaboration. The findings suggest that advertisements containing offensive language can increase the perceived importance of the issue and motivate individuals to seek help or register for training sessions. However, the effectiveness of such advertisements depends on the audience's prior exposure to sexism or homophobia and their perception of the issue's importance.

The study also highlights the potential risks and benefits of using offensive language in social marketing. While offensive advertisements can capture attention and provoke thought, they may also alienate certain audiences. Social marketers should carefully consider their target audience and the context in which offensive language is used to maximize the positive impact of their campaigns.

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Who is More Persuasive to an Audience, Micro-, Macro- or Mega- Influencers?

  • JOURNAL OF ADVERTISING RESEARCH

This study investigates the impact of influencer follower size on brand responses. It examines whether micro-, macro- or mega-influencers are more effective in increasing brand awareness, positive brand attitudes and purchase intentions. The study finds that micro-influencers, with fewer than 100,000 followers, are more persuasive than larger influencers due to their higher perceived credibility and similarity to the audience. The research highlights the importance of choosing the right influencer size for marketing campaigns to achieve better brand outcomes.

The study also explores the underlying mechanisms that explain the effects of influencer size on brand responses. It identifies three key factors: wishful identification, perceived credibility and perceived similarity. The findings suggest that micro-influencers are more effective in enhancing brand awareness and positive brand attitudes because they are perceived as more credible and similar to the audience.

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