The Six Principles of Digital Advertising

Charles r. Taylor
Villanova University

Editorial

With the recent publicity surrounding the growth of the social networking site Twitter, as well as the growth of social media and user-generated content sites (e.g. facebook, Cyworld, flickr, Wikipedia and various blogs), it is timely to reflect on what the advertising discipline has learned about interactive/digital advertising that may apply to these new forms. This article will examine what has been learned about digital advertising on the internet and new media, and propose that there are six principles of digital advertising that can be widely applied to new media. In examining new media and how to use them, it is important to realise that internet advertising is still relatively young, having begun in 1994. Moreover, for much of the first decade of its existence, it is probably fair to say that failure was more common than success. Ill-fated attempts to apply principles from other media (e.g. outdoor advertising, direct mail) led to advertising formats such as simple pop-up ads, email advertising or newsgroup advertising, which contributed to these early failures. Indeed, it was not that long ago that some were predicting that the internet would never become a major advertising medium. Over the past five years, multiple factors have, however, contributed to the internet achieving the status of major advertising medium. first, in major markets such as the uS, the Eu and several East Asian nations, for the first time, a large cross-section of the population had access to the internet as compared to earlier periods when only a subset of the population had internet access. According to Pew Internet and American life Project Surveys, as recently as the year 2000, for example, just 50% of uS adults were online. Second, technological improvements such as the advent of broadband allowed for more effective use of rich media content, allowing more options for internet advertisers. Third, by 2005 there was a realisation of the unique potential of search engines as an

International Journal of Advertising, 28(3), pp. 411418 2009 Advertising Association Published by the World Advertising research Center, www.warc.com  DOI: 10.2501/S0265048709200679

411

INTErNATIONAl JOurNAl Of ADVErTISING, 2009, 28(3)

advertising vehicle, leading to the pre-sale of media space on sites such as Google and Yahoo!. By this time, advertisers as well as search engine companies understood how consumers searched for information online, and noticed a substantial opportunity for advertising and behavioural targeting by matching advertisements to searches. In general, by 2005 advertisers knew more about the unique characteristics of the internet and this allowed it to be used more effectively than had previously been the case. An Ad Age report in 2005 showed that, among the top 200 large brands, the internet had surpassed radio and outdoor in terms of measured ad spending for the first half of 2005, coming in behind only television, magazines and newspapers (Advertising Age 2005). Subsequently, internet advertising has grown at faster rates than other media, and new forms of digital advertising, such as SMS, MMS, advergames and advertising on user-generated content sites, have also begun to grow. While the level of growth of advertising on these new media remains to be seen, research has given us a deeper understanding in terms of what drives effective internet advertising. As the field of advertising moves forward and is substantially impacted, if not revolutionised, by developments in these new media, it is time to take stock of what the field has learned about advertising in new media. In this context, I put forward six principles of new media advertising that my own read of the literature suggests have been well established and can be applied to other new media. While it is my hope that a summary of these principles is of value in and of itself to the advertising community, I also hope to generate discussion of what other principles may exist, and what types of research would be needed to establish additional principles. Of the six principles, three relate to consumer considerations, two to executional factors that can be incorporated into the design of the ad, and one to the general philosophy behind the advertising.

Digital advertising principles related to understanding consumer considerations

undoubtedly, consumers have concerns about receiving advertising via new media. As advertising is ubiquitous in economically developed societies across the world, marketers simply must be sensitive to concerns about privacy, trusting the sender, and the relevance of the message. Prior research documents the importance of these concerns in getting people to be receptive and responsive to digital advertising.

412

EDITOrIAl: THE SIx PrINCIPlES Of DIGITAl ADVErTISING

Digital advertising principle 1: marketers must be sensitive to consumer concerns about privacy and spam In the era of iPhones, BlackBerrys, androids and other multifunctional devices, consumers operate in an always on mode. As opposed to the consumption of traditional media, which took place in defined blocks of time, most of todays consumers leave their mobile device on for a majority of the day and, in effect, can be reached almost any time. At the same time, consumers view their mobile devices as part of their own personal space and are very sensitive to privacy issues in this context (Hart 2008). As a result, advertisers who simply bombard the consumer with unwanted messages are likely to be unsuccessful and, worse yet, annoy the consumer. With the number of spam messages over both the internet and mobile devices continuing to increase, marketers must be very cautious about the number of messages they send. An early study by Barwise and Strong (2002) found that, when consumers opt in to receive SMS messages, they react to them favourably, and that these consumers thought that a total of three text messages (from all advertisers combined) was about right. In general, no matter how much a consumer likes an advertiser, there will be significant limits on how many messages he/she wants to receive on their mobile device. Therefore, advertisers are wise to carefully limit the number of messages. Subsequent studies by Barnes and Scornavacca (2004), Carroll et al. (2007), unni and Harmon (2007), and Sultan and rohm (2008) have also found that getting permission from the user prior to sending messages led to both higher acceptance and effectiveness of mobile advertising. These findings are consistent with the notion that marketers need to be sensitive to consumer concerns about privacy (Carroll et al. 2007). Digital advertising principle 2: consumers are more likely to be receptive to digital ads from marketers they trust A study of 723 consumers aged 1854 conducted by return Path (2005) found that the number-one factor in getting email read is the consumer knowing and trusting the sender of the email. This factor ranked above such factors as the subject line, promise of a discount, and only opening emails normally read. Similarly, academic research has demonstrated that consumers are more receptive to digital advertising from marketers they trust. Several studies have found that trust in the advertiser is among the most important factors in digital advertising acceptance (e.g. Barnes & Scornavacca

413

INTErNATIONAl JOurNAl Of ADVErTISING, 2009, 28(3)

2004; Carroll et al. 2007; Okazaki 2008). Notably, Carroll et al. (2007) found that consumers preferred to have their service provider screen advertisers to provide some assurance that the message would come from a trusted source. Okazaki et al. (2007) also found trust to be closely linked to attitude towards the ad and message recall. Additionally, Choi et al. (2008) found that trust and advertiser credibility led to better results for advertisers. Collectively, these studies and others with similar findings point out that marketers dealing with consumers who already know and trust them are likely to have more success using digital media than those with whom consumers do not have a previous relationship. Digital advertising principle 3: consumers are more likely to be receptive to respond to digital ads for products that are relevant to them As noted by Nasco and Bruner (2008), the relevance of the message to the recipient is a key factor associated with the effectiveness of digital advertising. Consistent with this assertion, Carroll et al. (2007) found that consumers are more likely to be accepting of messages when the content is relevant to them. Pagnani (2004) also found that usefulness and relevance of the message was the numberone factor in acceptance of MMS messages. While the importance of relevance is not unique to new media, it clearly matters in an environment where consumers are concerned about privacy. Young singles, for example, have little interest in receiving text ads or emails advertising disposable nappies and other baby products. Thus, in an environment where consumers are sensitive to which messages they should be receiving, making sure the message is relevant is of high importance.

Digital advertising principles related to executional variables

When designing an ad, advertisers have lots of options in terms of the specific execution of the ad. for example, they can choose from various types of appeal, vary the length or number of words in the commercial, or choose to include music or celebrities in the ads. There are many aspects of executions that can be varied in an ad, and executional variables have spurred a large volume of research. While additional research is needed, it is clear that two aspects of execution take on additional importance in advertising in new digital media: interactivity and entertainment value.

414

EDITOrIAl: THE SIx PrINCIPlES Of DIGITAl ADVErTISING

Digital advertising principle 4: digital approaches that incorporate interactivity are more likely to be effective In a key early study of website effectiveness, McMillan et al. (2003) found that research on the internet suggests that interactivity is a key driver of success. Because of the internets ability (or potential ability) to engage the consumer for a longer period of time and in greater depth than traditional media, incorporating interactive activities, such as quizzes, voting, chatting or providing input or feedback on something, is a key to getting the consumer engaged and interested in staying on the website. Websites such as becomeanm&m.com, where consumers can turn their picture into an M&Ms figure or create an avatar based on an M&Ms candy character, and carrerbuilder.com, where an individual can age their photo 50 years, use creative approaches to interactivity that keep the consumer highly engaged and involved in the website. Academic research verifies that new media advertising approaches that incorporate interactivity are more successful than those that do not. for example, Dickinger et al. (2004) found interactivity related to more effective ads. Similarly, Jelassi and Enders (2005) found advertisers that incorporated interactivity achieved higher success. Given the greater capacity of new media to fully engage consumers, it is important that advertisers incorporate interactive approaches if they want to maximise success. Digital advertising principle 5: advertising messages that are entertaining have a higher chance of success in the digital context research has also converged on entertaining messages being successful in the new media context. While it may be acceptable in some traditional media for highly informational approaches to be successful in many contexts, this is less likely to be the case in an interactive advertising environment. raney et al. (2003) found that including a mini-movie with dramatic elements on an automotive website increased purchase intention as a result of consumers being entertained and staying on the website longer. Choi et al. (2008) also found entertainment to be important, leading to more positive attitudes towards the ad and purchase intention in messages in both the uS and South Korea. Similarly, Okazaki (2008) found that more entertaining messages were closely associated with convincing consumers to respond to a Japanese advertising campaign. While additional digital new media advertising principles relating to executions may arise from subsequent research (e.g. there is preliminary evidence that humorous approaches can sometimes be effective) at the present time, it is clear that digital advertising programmes that incorporate both interactivity and

415

INTErNATIONAl JOurNAl Of ADVErTISING, 2009, 28(3)

entertainment tend to have a significant advantage. A good example of this is the Survivor game that Purinas Meow Mix ran in conjunction with Animal Planet in 2006. In this promotion, at the end of a regular programme on Animal Planet each night for nine days, Purina had cat-testants from ten cities compete in contests such as purring, catching toy mice and falling asleep. Each night, viewers were asked to vote for their favourite cat, and the cat with the fewest votes was voted off the show (and adopted by a loving home that would receive a free years supply of Meow Mix). Meanwhile, the contest stated that the winner would remain on Madison Avenue, where the contest was filmed, and become the VP of research & Development for Purina, with the duty of personally tasting and testing the product. While such a show might not have appeal for all consumers (e.g. dog lovers), it incorporated interactivity in the form of voting and was certainly entertaining to the target audience, which was cat lovers. By combining interactivity and entertainment value, Purinas Survivor is a good example of effective interactive advertising.

A final general digital advertising principle

Digital advertising principle 6: in the long run, new media messages need to build the brand to be effective While some early discussions of interactive advertising focused on short-term sales promotions, including techniques such as location-based messaging, in an era where branding is more important to marketers than ever, as a general rule, digital advertising needs to take advantage of new medias unique brand-building capacity. As stated by Chiagouris and Wansley (2000, p. 35) in an early discussion of the internet and how it should be used by marketers, When it comes to building a brand on the internet, never have so many talked so little of what may be the internets most stunning capacity strengthening the brand with customers and prospects. Because consumers can move from awareness to action quickly in an interactive environment, there is an enormous opportunity for relationship building. When consumers become aware of a product and visit a website, they may take considerable time learning about the product, gaining familiarity and appreciation for it, and, in some cases, even initiate a purchase (Chiagouris & Wansley 2000). Thus, it is important for firms to take advantage of the brand-building capacity of the internet when advertising. Consistent with this notion, Okazaki and Taylor (2008) found that managers of Japanese and uS subsidiaries of firms operating in the Eu believed that the ability to build brands was the single most important factor in their intention to adopt SMS advertising.

416

EDITOrIAl: THE SIx PrINCIPlES Of DIGITAl ADVErTISING

Discussion
It is now clear that new media will play a significant role in the future of advertising. The degree to which individual new media forms become important may vary, but the unique advantages of the internet allow for effective targeting of consumers and potentially allow for greater engagement of the consumer. As a result, it is important to continue to evaluate and compile knowledge on what makes new media advertising effective. Submissions on this topic to IJA are most welcome as it is an area where much additional research is needed. In this issue some papers on new media topics have been intentionally clustered together to provide the reader with new perspectives. It is my hope that you, the readership, enjoy these papers as well as the others included in this issue.

References
Advertising Age (2005) Megabrand spending by media, 12 September, p. 34. Barnes, S.J. & Scornavacca, E. (2004) Mobile marketing: the role of permission and acceptance. International Journal of Mobile Communications, 2(2), pp. 128139. Barwise, P. & Strong, C. (2002) Permission-based mobile advertising. Journal of Interactive Marketing, 16(1), pp. 1424. Carroll, A., Barnes, S.J., Scornavacca, E. & fletcher, K. (2007) Consumer perceptions and attitudes toward SMS advertising: recent evidence from New Zealand. International Journal of Advertising, 26(1), pp. 7998. Chiagouris, l. & Wansley, B. (2000) Branding on the internet. Marketing Management, 9(2), pp. 3438. Choi, Y.K., Hwang, J.S. & McMillan, S.J. (2008) Gearing up for mobile advertising: a cross-cultural examination of key factors that drive mobile messages home to consumers. Psychology & Marketing, 25(8), pp. 756768. Dickinger, A., Haghirian, P., Murphy, J. & Scharl, A. (2004) An investigation and conceptual model of SMS marketing. Proceedings of the 37th Hawaii International Conference on System Sciences. IEEE. Hart, K. (2008) Advertising sent to cellphones opens new front in war on spam. Washington Post, 10 March, p. A1. Jelassi, T. & Enders, A. (2005) Strategies for e-Business. Creating Value Through Electronic and Mobile Commerce. upper Saddle river, NJ: Prentice Hall. McMillan, S.J., Hwang, J.-S. & lee, G. (2003) Effects of structural and perceptual factors on attitudes toward the website. Journal of Advertising Research, 43(4), pp. 400409. Nasco, S. & Bruner II, G.C. (2008) Comparing consumer responses to advertising and non-advertising mobile communications. Psychology & Marketing, 25(8), pp. 822838. Okazaki, S. (2008) Mobile-based word-of-mouth among Japanese youth: how new brand referral campaign works. Psychology & Marketing, 25(8), pp. 714731. Okazaki, S. & Taylor, C.r. (2008) What is SMS advertising and why do multinationals adopt it? An empirical study in European markets. Journal of Business Research, 61(1), pp. 412.

417

INTErNATIONAl JOurNAl Of ADVErTISING, 2009, 28(3)

Okazaki, S., Katsukura, A. & Nishiyama, M. (2007) How mobile advertising works: the role of trust in improving attitudes and recall. Journal of Advertising Research, 47(2), pp. 165178. Pagnani, M. (2004) Determinants of adoption of third generation mobile multimedia services. Journal of Interactive Marketing, 18(3), pp. 4659. Pew Internet & American life Project (2000) The Internet and American Life Daily Tracking Survey, April, available at http://www.pewinternet.org/Shared-Content/Data-Sets/2000/ April-2000-Survey-Data.aspx, accessed 5 June 2009. raney, A.A., Arpan, l., Pashupati, K. & Brill, D.A. (2003) At the movies, on the web: an investigation of the effects of entertaining and interactive web content on site and brand evaluations. Journal of Interactive Marketing, 17(4), pp. 3853. return Path (2005) factors that influenced uS consumers choice of e-mail to open and read during the holiday season 2004, available at http://www.salesware.it/eng/ engEmailMktgStatereturnPath221005.htm (accessed 30 May 2009). Sultan, f. & rohm, A. (2008) How to market to generation M(obile). Sloan Management Review, 49(4), pp. 3541. unni, r. & Harmon, r. (2007) Perceived effectiveness of push vs pull mobile locationbased advertising. Journal of Interactive Advertising, 7(2), pp. 154177.

418