Although firms invest much in targeted advertising, little is known about when it is most effective. A new Marketing Science Institute (MSI) working paper now shows that such advertising helps facilitate the purchase journey along different stages. While targeting on social media is found effective for consumers during the early stages of that journey, retargeting is best served for consumers who are closer along the line to making that purchase. Another important finding was that cross-platform targeting does not motivate consumers who are unfamiliar with the product or brand.
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Learn the role of product variety in forming new consumption routines with this recent MSI working paper. Researchers Sarah Memmi and Jordan Etkin conducted a six-week field study focusing on flossing habits. They found that using a variety of dental flosses, as opposed to a single type, can help consumers engage more consistently in the new routine. This research suggests that variety not only makes the routine more enjoyable but also aids in preference development.
The findings challenge the traditional view that uniformity is key to habit formation. Instead, incorporating variety can be a simple and effective strategy for both consumers and marketers to enhance engagement and loyalty. This research provides actionable insights for creating and maintaining consumption routines, particularly in health-related behaviors.
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Are social media platforms compensating musical artists enough for their IP? Although music companies claim social platforms cannibalize sales, the platforms say they give artists much needed exposure. Who is correct? The study examines the impact of TikTok on music consumption and revenue. It highlights what TikTok pays studios and discusses the concerns from Universal Music Group (UMG) regarding inadequate compensation for its artists.
Additionally, it mentions that videos on TikTok function as promotional materials or trailers for full-length productions. The study uses a difference-in-difference model to analyze the data. It concludes that music labels can sharpen their licensing agreements based on the findings.
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Explore the impact of racial minority representation in TV advertisements on consumer choices in the mortgage market in this new MSI working paper. The study employed a double machine learning model to control for high-dimensional video and text features, ensuring robust estimates. Its findings reveal that higher minority presence can significantly increase TV advertising effectiveness.
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