Advertising Effects and Effectiveness

Abstract

The results of the application of an integrated econometrictime‐series model for advertising effectiveness is presented. The modelform gives rise to three possible advertising effects: brand loyalty,current effects (both simple and compound) and carryover effects. Theinherent nature of these effects is related to the degree of involvementand the affective or cognitive aspects of the purchase decision.Consequently, the positioning of the product on the Foote, Cone &Belding grid may be used to hypothesize the nature of effects. Theresults of the application of this model to new car purchases in theSouth African market by media type lead to the propositions that: (1)the creative devices and content of an advertisement determine whetherit will be effective but not the magnitude of the effect; (2) themagnitude of the effectiveness of an advertisement is dictated by theextent to which the medium in which it is placed is used.