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In today’s fast-paced digital era, advertising design heavily depends on advanced visual communication techniques to capture and maintain consumer attention. By leveraging dynamic visuals, brands can effectively engage diverse audiences and create long-lasting connections with consumers. Traditional advertising design often lacks effectiveness due to subjective judgments. The challenge lies in combining aesthetics with audience engagement using algorithmic techniques for improved visual communication. The objective of this study is to explore the application of algorithm-driven visual communication strategies in advertising design, focusing on enhancing the effectiveness of visual content by aligning with audience preferences and behaviors. The collected data undergo preprocessing using the normalization technique. Feature extraction is performed using convolutional neural networks (CNNs) to analyze advertising background images, allowing for the selection of suitable visuals that resonate with the target audience. This study proposed an intelligent moth flame-optimized malleable-gated recurrent units (IMF-MGRU) method that synthesizes textual information to generate effective product taglines, enhancing the expressiveness of the advertising image. Malleable-gated recurrent units (MGRU) are utilized to create relevant taglines that align with the selected visuals, while the intelligent moth flame (IMF) optimizes the layout of elements within the image, minimizing overlap among key components. Experimental findings show that the suggested method enhances the appeal of advertising content, particularly highlighting considerable advantages in performance during the evaluation experiment. The proposed IMF-MGRU method represents a significant advancement in synthesizing visual and textual elements, resulting in cohesive and compelling advertising designs.
The traditional Sznajd model, as well as its Ochrombel simplification for opinion spreading, is applied to marketing with the help of advertising. The larger the lattice, the smaller the amount of advertising is needed to convince the whole market.
In the context of an extension of Axelrod's model for social influence, we study the interplay and competition between the cultural drift, represented as random perturbations, and mass media, introduced by means of an external homogeneous field. Unlike previous studies [J. C. González-Avella et al., Phys. Rev. E72, 065102(R) (2005)], the mass media coupling proposed here is capable of affecting the cultural traits of any individual in the society, including those who do not share any features with the external message. A noise-driven transition is found: for large noise rates, both the ordered (culturally polarized) phase and the disordered (culturally fragmented) phase are observed, while, for lower noise rates, the ordered phase prevails. In the former case, the external field is found to induce cultural ordering, a behavior opposite to that reported in previous studies using a different prescription for the mass media interaction. We compare the predictions of this model to statistical data measuring the impact of a mass media vasectomy promotion campaign in Brazil.
We present algorithmic procedures for generating systematically ideas and solutions to problems which are perceived as creative.
Our method consists of identifying and characterizing the most creative ideas among a vast pool. We show that they fall within a few large classes (archetypes) which share the same conceptual structure (Macros). We prescribe well defined abstract algorithms which can act deterministically on arbitrary given objects. Each algorithm generates ideas with the same conceptual structure characteristic to one of the Macros. The resulting new ideas turn out to be perceived as highly creative.
We support our claims by experiments in which senior advertising professionals graded advertisement ideas produced by our method according to their creativity. The marks (grade 4.6±0.2 on a 1–7 scale) obtained by laymen applying our algorithms (after being instructed for only two hours) were significantly better than the marks obtained by advertising professionals using standard methods (grade 3.6±0.2)).
The method, which is currently taught in USA, Europe, and Israel and used by advertising agencies in Britain and Israel has received formal international recognition.
This paper presents three simple models to study how prices, politics and persuasion may each play a role in environmental policy-making. Our conclusions are twofold. First, in the absence of increasing returns, requiring the polluting industry to purchase pollution permits can internalize the negative externality of pollution, and the optimal price of pollution permits should increase with the disutility of pollution. Second, with increasing returns in the industry using clean technologies, it is welfare enhancing to complement the pollution permits policy with a tax-funded subsidy to the clean industry, or with a tax-funded public campaign to persuade consumers to move away from pollution-generating goods.
Online-to-Offline service platforms are rising with the development of e-commerce and the increasing need for service. Taking the hospitality and tourism industries as typical examples, this paper considers a platform service supply chain, where a leading hotel is responsible for offline service, and a following platform is in charge of pricing, online service, and advertising investment. Three decision modes (i.e., decentralized, cost-sharing, and integrated) for the platform service supply chain are investigated. We derive the optimal service levels for the hotel and the platform, advertising investment, and retail price in each mode. Our analyses indicate that perceived service quality and brand image vary over time, and they gradually converge to a steady-state. The cost-sharing mode can be achieved if the hotel can obtain enough profit per unit. Once the cost-sharing mode is achieved, it can help improve perceived service quality and brand image, which further increases both the hotel and the platform’s profits. However, the integrated mode generates the best-perceived service quality, brand image, supply chain performance, and the lowest price.
Advertising competition among firms may give rise to very complex dynamical behaviors. In this article, under the assumption of spillover effects, a two-stage dynamical Cournot game of advertising competition between two firms, which produce homogeneous products, is developed. Then, the local stability of the equilibrium points is discussed, and stability conditions of the equilibrium points are obtained. In order to reveal the complex dynamical behaviors of the model, both analytical and numerical methods are employed. The research results show that the two coordinate axes and the diagonal of the system are invariant manifolds, and one can obtain the dynamical behaviors on the invariant manifolds by analyzing the Logistic map. In addition, it is found that the advertising efforts of these two firms may be synchronized, even if the system is in a chaotic state. Multistability is another topic of focus. It is found that not only two attractors but also three attractors can coexist in the phase space, and contact bifurcation can also occur during the evolution of the attracting basins. Finally, the impact of corporate advertising efforts on corporate profits is analyzed. It is found that too much advertising effort is harmful to the firms, and a firm with low adjustment speed can even earn more when the system is chaotic.
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EUROPE — Radioembolization using sir-spheres significantly improves overall survival for patients with inoperable colorectal cancer.
We investigate the impact of advertising in a static differentiated duopoly. First, we consider the Nash equilibrium if firms compete with both prices and advertising. Second, we examine the Nash equilibrium if firms only compete in prices and do not advertise. We characterize the circumstances in which the profit, output, and/or price of each firm is greater (or smaller) with advertising than without advertising.
A manufacturer and a retailer are the members of a simple distribution channel for a particular product in a segmented market. The advertising efforts of the two agents have a joint effect on the goodwill of the different market segments and then on the demand. The channel members aim at maximizing their profits, by choosing suitable advertising media and efforts. We focus mainly on competition between manufacturer and retailer, obtaining Nash equilibrium strategies, in the contexts of linear and concave demand. We consider also the possibility of cooperation, obtaining the coordinated channel optimal decisions.
We model and analyze strategic interaction over time in a duopoly. Each period the firms independently and simultaneously take two sequential decisions. First, they decide whether or not to advertise, then they set prices for goods which are imperfect substitutes. Not only the own, but also the other firm's past advertisement efforts affect the current "sales potential" of each firm. How much of this potential materializes as immediate sales, depends on current advertisement decisions. If both firms advertise, "sales potential" turns into demand, otherwise part of it "evaporates" and does not materialize. We determine feasible rewards and equilibria for the limiting average reward criterion. Uniqueness of equilibrium is by no means guaranteed, but Pareto efficiency may serve very well as a refinement criterion for wide ranges of the advertisement costs.
In this paper, we modify a two-dimensional variant of a two-state nonlinear voter model and apply it to understand how new ideas, products or behaviors spread throughout the society in time. In particular, we want to find answers to two important questions in the field of diffusion of innovation: Why does the diffusion of innovation take sometimes so long? and Why does it fail so often? Because these kind of questions cannot be answered within classical aggregate diffusion models, like the Bass model, we use an agent-based modeling approach.
This study explores the use of rough-set methods for marketing decision support systems in the retail business. A tutorial presentation of Rough Set Data Analysis (RSDA) in the context of knowledge discovery from time series databases is given. We show how an RSDA model can be used to develop a marketing decision support system which can capture the complex relationships between marketing factors, such as advertising and promotion, and the total impact on sales levels in order to find influential advertising strategies. This information is used by the business manager to make faster and better strategy decisions for the business to survive in the rapidly changing and competitive environments. The data set used for RSDA application example contains weekly investments in different media categories: TV, radio, cinema, morning press, evening press, popular press, special interest press, and outdoor posters; for seven makes of cars in the Swedish market.
This paper describes and discusses how innovation impacts creativity in the advertising sector. It points to the double meaning of creativity — as innovativeness and as artistic skills — and indicates a tension between the two. Empirical illustrations consist of two case studies from the advertising sector. These point to how innovations (in terms of adaptation of new technology) negatively impact artistic creativity. Contextual factors creating a need for new technology did have an impact, and meant that companies became increasingly competitive and roles became unclear. On the company level, innovation caused knowledge gaps, increased formalization, and expanded the division of work. Contribution is made to research on the management of creativity by suggesting how innovation impacts artistic creativity. Furthermore, the discussion on company level creativity contributes to research on the advertising sector, since the literature has foremost discussed creative processes of individual campaigns.
This paper studies the effect of advertising on stock returns both in the short and in the long run. We find that a greater amount of advertising is associated with a larger stock return in the advertising year but a smaller stock return in the year subsequent to the advertising year, even after we control for other price predictors, such as size, book-to-market, and momentum. We conjecture that advertising affects stock returns by attracting investors’ attention to the firm’s stock. Stock price increases in the advertising year due to the attracted attention, but decreases in the subsequent year as the attracted attention wears out over time. We test this investor attention hypothesis and document consistent findings. We find that advertising increases a firm’s visibility among investors in the advertising year. We further find that the negative effect of advertising on the long-run reversal in stock returns is more pronounced if a firm attracts greater investor attention in the advertising year, or if investors face a larger cost of short selling the firm’s stock. It is also more pronounced for small firms, value firms, and firms with poor ex-ante stock or operating performance. Finally, we find that the effect of advertising on future stock returns is stronger when advertising increases compared to the case when advertising decreases.
Advertising has a major effect on individual investors’ decisions. Financial instruments tend to be advertised more when market sentiment is high, as investors are more willing to buy. Mechanisms affecting the relationship between market sentiment and advertising activity remain unexplored in the finance literature. Using a novel dataset of advertisements for mutual and exchange-traded funds from the main Italian financial newspaper, we show that the effect of market sentiment on financial advertisements depends upon the distribution channel. Sentiment matters only for products directly traded by the investors, such as exchange-traded funds. Conversely, for financial products — like mutual funds — distributed through a captive distribution network (bank branches and tied agents), financial advisers’ actions mitigate the effect of market sentiment on advertising activity. Overall, our findings provide some evidence of the persuasive power of financial advisers in investors’ decisions, which arguably requires increased attention from financial market regulators.
Attitudes toward advertising is an established construct in marketing. The construct has been researched mostly using the attitude theory and has been of interest to both marketing academicians and practitioners. Attitudes toward advertising have been researched with different frameworks, in different markets and for advertising in different media. However, there is limited research on consumers’ attitudes toward advertising in Asian markets. In particular, there is no study so far on attitudes toward advertising in Brunei Darussalam, an affluent but less populous South East Asian market. This paper investigates attitudes toward advertising, antecedents to attitudes toward advertising and consequent behaviors in Brunei. The framework proposed by Pollay and Mittal (1993), later further by Wolin et al. (2002) is used in this paper. Responses from the consumer surveys were analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM). It was found that most of the belief factors in Pollay and Mittal framework influenced attitudes toward advertising among Bruneian consumers. Overall positive attitudes toward advertising were observed, which in turn influenced advertising-related behaviors. The significance of these traits is explained based on the distinctive socio-economic environment as well as the advertising landscape of Brunei Darussalam. Understanding consumers’ attitudes toward advertising and ensuing behaviors for previously unexplored markets shall be an important initiation in improving the quality as well as productivity of advertising.
This paper describes and discusses how innovation impacts creativity in the advertising sector. It points to the double meaning of creativity — as innovativeness and as artistic skills — and indicates a tension between the two. Empirical illustrations consist of two case studies from the advertising sector. These point to how innovations (in terms of adaptation of new technology) negatively impact artistic creativity. Contextual factors creating a need for new technology did have an impact, and meant that companies became increasingly competitive and roles became unclear. On the company level, innovation caused knowledge gaps, increased formalization, and expanded the division of work. Contribution is made to research on the management of creativity by suggesting how innovation impacts artistic creativity. Furthermore, the discussion on company level creativity contributes to research on the advertising sector, since the literature has foremost discussed creative processes of individual campaigns.
Many organizations lack an authentic link between its brand and its business story. Promises made to internal stakeholders can’t be kept toward external stakeholders. This chapter examines how a brand can be strengthened by a successful story. The results of a systematic literature review have shown that cognitive dissonance among internal employees and external stakeholders arises if an organization’s brand and its story are inconsistent. The famous campaign “Facing The North” by Mercedes-Benz and The North Face illustrates our findings regarding an experience-based brand story. This chapter addresses researchers and practitioners in the fields of entrepreneurship as well as marketing and enables them to learn how to use an affecting business story to strengthen an organization’s brand.
In this chapter, we discuss diversity and inclusivity in advertising. Based on theories of socialisation, social influence and attitude formation, we explain how advertising messages impact on the target and broader audiences using the case of a 2020 TRESemmé advertising campaign for haircare products in South Africa. The advertising campaign posted by a major pharmaceutical retail chain (Clicks) on their website described black people’s hair as “frizzy & dull hair” and “dry & damaged hair”, in comparison to white people’s hair, which was labelled as “normal hair” and “fine & flat hair”. The campaign resulted in public outrage and protests because many perceived it to be racist, offensive and distasteful. We deconstruct the advertisement and analyse the ensuing fallout using publicly available resources. The advertisement had an unintended message emanating from the use of the textual content and the race of the models used. Given that incidents like this are not uncommon, we conclude that diversity and inclusivity interventions need to be taken more seriously in advertising.