In today’s social climate, brands must constantly be aware of social issues. The cost of ignorance can be substantial. Negative brand adjacency can not only damage a brand’s reputation, it can have a direct impact on its bottom line as well.
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Chinese researchers have found that social media advertising can make a significant impact on people who are socially connected to the viewers of ads—even more so than on the targeted viewers. This effect is strongest among consumers with weaker rather than strong social ties, and it challenges targeting methods rooted in customer centricity models.
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Does direct persuasion still work in advertising? Two seasoned advertising research academics don’t think so. In an essay backed by empirical evidence, they argue—given the major changes in the ways consumers interact with brands today, such as online and through social media—that advertisers should shift from a direct persuasive strategy, to providing experiences that blend entertainment with more indirect persuasion.
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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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To tackle the rarely studied topic of how a TV commercial affects ones that follow, this study analyzed the halo effects of two types of ads with important findings. Among them, it showed that an ad evoking negative feelings, such as anger or fear, can affect the ad that follows in terms of ad evaluations, brand perceptions, and purchase intent. The authors also raised a question regarding context in programmatic buys.
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This may bring a smile to your face. A celebrity’s smile can go a long way toward improving perceptions about an ad and purchase intent, especially when it’s perceived as genuine. The quality of a smile can even help to offset negative attitudes toward the celebrity, which can help brands minimize the need to replace celebrity talent, if a celebrity “falls from grace.”
Member Only AccessWord of Mouth messaging can drive sales. But do online conversations represent the entirety of WOM impact? No, according to Engagement Labs. Their work shows how online and offline conversations differ, and how important it is to drive both to maximize WOM impact.
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This addition to the ARF’s Context Effect Project provides compelling evidence for the impact of context effects on advertising effectiveness, based on an exhaustive literature search and original ARF research. While the review notes that there is no simple one-size-fits-all rule, it provides insights that can help marketing, agency and research executives who seek to improve advertising outcomes.
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