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Advertising Effectiveness

Gerard J. Tellis


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How effective is advertising in contemporary markets? What does advertising effectiveness mean? By the term “advertising effectiveness,” we mean what change →  advertising achieves in markets. Advertising also creates changes in awareness, →  attitudes , beliefs, and intentions. These are all valid effects of advertising. However, in the interest of focus and parsimony, this entry focuses on the effects of advertising on only market behavior . This topic has been the subject of research from the time firms began to advertise. Scientific research has begun to accumulate especially in the last 50 years ( Tellis 2004 ; Tellis & Ambler 2007 ). This research falls within one of two paradigms: behavioral research and econometric research. Behavioral research uses theater or lab experiments to address the effects of advertising on awareness, attitudes, beliefs, and intentions (→  Experiment, Laboratory ). On the other hand, field research uses field experiments (→  Experiment, Field ) and econometric models to assess the effects of advertising on market behavior. This entry will attempt to classify and summarize what has been learnt from the latter paradigm of research. We use six terms quite generically here: product, firm, →  brand , consumer, market, and sales. The term “product” refers to any good, service, idea, or person being advertised. The term “firm” refers to any ... log in or subscribe to read full text

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