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Media Engagement and Advertising Effectiveness BOBBY J. CALDER and EDWARD C. MALTHOUSE Presenter: Cher WANG

Media Engagement and Advertising Effectiveness

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Page 1: Media Engagement and Advertising Effectiveness

Media Engagementand

Advertising Effectiveness

BOBBY J. CALDER and EDWARD C. MALTHOUSE

Presenter: Cher WANG

Page 2: Media Engagement and Advertising Effectiveness

The quality of the Brand

The quality of the Message

Medium

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What is Engagement?

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Definition

The Advertising Research Foundation (ARF) defines engagement as follows: ‘‘Engagement is turning on a prospect to a brand idea enhanced by the surrounding media context’’ (ARF 2006).

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What Engagement feels like?

A sense of• involvement• being connected with something

Comes from• experiencing something in a certain way

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What is an Experience?

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Definition

• A simple answer is that an experience is something that the consumer is conscious of happening in his or her life.

• “. . . we have an experience when the material experienced runs its course to fulfillment. Then and then only is it integrated within and demarcated in the general stream of experience from other experiences . . . is so rounded out that its close is a consummation

and not a cessation. Such an experience is a whole and carries with it its own individualizing quality and self-sufficiency. It is an experience. ” (John Dewey)

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Engagement and Experiences

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Engagement as Motivational Experience

the sum of the

motivational

experiences

consumers have

with the media

product

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Analysis of Engagement and Experiences

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Identifying Experiences

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The Four Types of Engagement Experiences

breadth

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The Four Types of Engagement Experiences

• Transportation: where the activity itself is the goal

• Promotion/Prevention: where the goal is extrinsic to the activity

• Rejection: when the goal is extrinsic to the activity

• Irritation: when the person wants to avoid the activity itself

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Levels of Experience Description

depth

identify common media experiences from qualitative research

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Identifying Media Experiences

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Method• Qualitative research in the

form of individual in-depth interviews with users. Each interview focuses on a specific media product, such as magazines, newspapers, TV, and online sites.

Logic• From qualitative interviews

they induce a large number of experience items.

• Then employ quantitative methods to explore the relationships among the items.

• Refer to these sets of items as experience metrics or scales and use them to measure experiences.

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Results

Transportation experience

• Timeout Experience • Visual Imagery

Experience • Regular Part of My Day

Experience

Promotion/Prevention experience

• Talking About and Sharing Experience

• Utilitarian Experience • Makes Me Smarter

Experience • Credible and Safe

Experience • Community Connection

Experience

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Results

Irritation experience

• Ad Interference Experience

Rejection experience

• Overload, Too Much Experience

An experience with a media product will ordinarily be a combination of different constitutive experiences.

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Metrics for Measuring Media Experiences and Engagement

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Why measure experiences and engagement?

• Experiences with media content can affect reactions to advertising. Marketers need to understand the experiences offered by various media vehicles when placing ads.

• As for media organizations, they should monitor consumer experiences as a marketing management tool.

• A media organization may wish to test new content to determine whether certain experiences can be improved.

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How to measure experiences and engagement?

• Two methods:- a` la carte (means you order one dish at a time): for

measuring just the relevant experiences.

- table d’hoˆte (the restaurant or hotel dining room menu offers 3 or more courses for one price): for measuring a variety of experiences

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A sample of “table d’hoˆte ”

Online Engagement and Experiences Measurement Model Used for Testing Effects on Advertising

Application:In the case of media products with a wide breadth of content and high degree of similarity with other competitive products across publications.

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Engagement and Advertising Effectiveness

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The effectiveness of advertising

The quality of the Brand

The quality of the Message

Medium• Execution(passive)• Constitutive experiences

(active)

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How to prove constitutive experiences impact effectiveness of advertising ?

• Summarize several studies that demonstrate the basic effect.

• Examine how often this occurs generally and how important such context effects are relative to other factors such as the size and placement of the ad.

• Examine the hypothesis that advertising can be more effective when ads are experientially congruent with the media vehicle. (congruency hypothesis)

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Study summary

• The extent to which readers experience the content of a magazine as Utilitarian or as Makes Me Smarter is related to standard copy-testing measures for a test ad.

• Web site users who are engaged with web sites are more positive toward an online travel agency (Orbitz) ad and are more likely to click on the ad.

Malthouse, Calder, and Tamhane (2007)

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Examination of how important is the effect

• In another study of over 3,000 actual magazine advertisements, they show that the effects of experiences on ad recall and measures of the actions taken because of seeing the ad are very general, holding across this large sample of ads (Malthouse and Calder 2007).

• They also show that the experience effects are roughly comparable in strength to execution factors including the size (half-page, full page, etc.), placement (run-of-book, back cover, inner back cover, etc.) and the number of colors in the ad.

The research suggests that an ad appearing in the more engaging magazine will be more effective than the same ad appearing in the other magazine.

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Examination of Congruence between Advertising and the Media Vehicle

• Evidence 1:‘‘ the medium and the advertised brand converge and become more similar in consumers’ minds’’ ( Dahle Bn (2005) )

• Evidence 2: Experiential congruence is related to advertising effectiveness. (congruency hypothesis study)

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Congruency hypothesis study

Method• Four magazines with four ads

are read primarily by women• Recruited readers of each of

the magazines to come to an online research site to view a copy of the cover of one of the four magazines and read typical content from it.

• The readers were asked about their Visual Imagery and Timeout experiences with the magazine and about their reactions to the ad.

Logic• Measuring experiences to the

experience of ads and asked whether congruence between the two experiences impacts advertising effectiveness.

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Congruency hypothesis study

Ads Used to Test the Ad Experience-Media Experience Congruence Hypothesis

Online Magazine Testing Procedure

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Result

Experiential Similarity: Four Magazines and Four Ads

The Relationship between Visual Imagery Congruence and Advertising Effectiveness

The smaller the distance between the ad and magazine, the more effective the ad.

The more the Visual Imagery congruence between the magazine and the ad, the more effective the ad.

Both media companies and advertisers need to give more thought to the congruence of ads with vehicles by considering the fit of ad experiences to media experiences.

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Potential Negative Effects of Engagement

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Current studies

• TV program Sex and the City: Engagement may not always enhance advertising. (Parker and Furnham 2007)

• Print media and ads & TV program(ER): Engagement can result in positive effects but sometime it can cause negative effects. (Wang and Calder 2006, 2007)

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Future study

• How likely negative effects are and when they might occur?

• How the experience of the media product and the experience of the ad fit together and how intrusion can interfere with this process?

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Engagement with the Brand

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Engagement with the advertising

medium Engagement with

the advertised brand itself

Media engagement affects advertising and offers a new avenue to making advertising more effective.

The brand is the concept that defines and describes an experience that the marketer intends the consumer to have.

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Integrated Marketing as the Identification, Measurement, and Improvement of Experiences

anything that

creates

experiences

a continuous feedback loop with experience identification, measurement, and improvement at its core

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Future of Brands

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• Is there really any choice but to look at the experience of the consumer and to focus on what would make a consumer have an experience with the product?

• Can marketing not be centered on finding and creating experiences for consumers?

The future of brands depends on finding and creating experiences, and not just experiences based on liking, but experiences reflecting engagement with what consumers are trying to make happen in their lives.