Advertising Effects and Effectiveness

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Abstract
The results of the application of an integrated econometric time-series model for advertising effectiveness is presented. The model form gives rise to three possible advertising effects: brand loyalty, current effects (both simple and compound) and carryover effects. The inherent nature of these effects is related to the degree of involvement and 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. The results of the application of this model to new car purchases in the South African market by media type lead to the propositions that: (1) the creative devices and content of an advertisement determine whether it will be effective but not the magnitude of the effect; (2) the magnitude of the effectiveness of an advertisement is dictated by the extent to which the medium in which it is placed is used.

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