Not since the advent of the television ad in 1941 has the potential for new ad formats been so great. The emergence of digital platforms is enabling marketers to experiment with a number of new ad formats, each of which could revolutionize marketing as we know it. Throughout 2014 we are highlighting the most effective of the techniques being broadly adopted.

Part IV: Culturally Targeted and Inclusive Advertising

In many ways culture is the lifeblood of advertising. By drawing upon cultural cues advertisers can more easily convey emotional and informational content to consumers. And with the rapidly evolving demographics within the United States, making advertising campaigns inclusive has become a high priority. But there is also a potential danger in using culturally charged content. If a cultural reference within mass media does not resonate at least somewhat broadly, the advertising will fall flat or, in extreme cases, may even alienate members of the general audience and lead to social media backlash.

So how can an advertiser reap the reward of either culturally targeted or inclusive advertising without the risk? The secret is a little talked about psychological principle called cultural congruence. Simply put, people are generally most comfortable in receiving and most receptive to messages within the context of their own culture. This has major ramifications for the choices in executional techniques, selling propositions, and casting within the advertising.

To help advertisers navigate around obstacles to these types of campaigns, MSW-ARS Research has released a white paper on the topic, Cultural Congruence and Advertising Effectiveness. Below are two example best practices from the paper.

1. Do not assume that advertising will perform similarly across cultural groups.

For many years it was suggested that advertising effectiveness did not vary much among cultural groups. This was based on lack of statistical significance in the mean values between subgroups exposed to the same advertising. But averages can be deceiving. The table below shows the average response by African American and Caucasian consumers to over two thousand of the same pieces of advertising. While the mean scores are not substantially different, the variation in scores between the groups is significant at the 99% confidence level. In other words, there are differences in which ads performed well and performed poorly among these groups.

2. When attempting to transfer ads between cultural groups, adaptations should be made to ensure the selling proposition resonates with the new group.

Cultural congruence can play a powerful role in the motivating power of a selling proposition. If the insight underlying the selling proposition relies on a cultural association, it will not easily transfer to another group. Or even if the insight is relevant to multiple groups, it may be more difficult to deploy for some groups versus others. This can have a substantial impact on sales effectiveness.

For example, a meta-analysis of thirty-eight US Hispanic targeted ads representing twenty product categories shows how advertising effectiveness varies based on the customization of the selling proposition. Ads were segmented by whether they were specifically created for the Hispanic market (thus drawing upon market specific insights), general market advertising adapted to the Hispanic market (changing elements to make insights more relevant to the Hispanic market), or general market advertising simply dubbed into Spanish. It was found that ads created specifically for the Hispanic market were forty percent more persuasive than those simply adapted for this market and three times as effective as ads dubbed into Spanish.

This same principle holds true for inclusive ads but instead of adapting the selling proposition to each group, a universal need or desire is drawn upon to create a selling proposition that transcends groups. As an example this ad from Chevrolet draws upon the universal desire for safety for one’s family.

Additional learnings, best practices , and case studies are included in the full white paper.

To receive a complimentary copy of our full Cultural Congruence White Paper, please contact your MSW●ARS representative.

Celebrity Advertising: Pitfalls or Payoffs?

In many ways we live in a celebrity driven culture.  Whether it be television, movies, music, sports, fashion or politics; star power rules.  We read celebrity news, watch them on talk shows or reality television and follow them on twitter.  Certainly the stars have cashed in on this national – and international – obsession with celebrity.  Some examples – Beyoncé’s $50 million deal with Pepsi, Usain Bolt’s $8.6 million annual contract with Puma and Brad Pitt earning $6.8 million to be the face of Chanel No. 5.  But can the interest and loyalty attached to a celebrity be successfully transferred to a brand that pays for an endorsement?  Or do jaded consumers dismiss these endorsements as a sell-out by their otherwise adored idols?

Celebrity Endorsement Track Record

Based on historical results of MSW●ARS television ad testing, in terms of the ability to persuade consumers to choose the brand over competitors, overall, celebrity ads achieve CCPersuasion scores right at parity with the norm.

However, when a celebrity ad clicks, the results can be outstanding.  In fact, among the top scoring established product ads in the MSW●ARS database, celebrity ads have out-performed non-celebrity ads.  The top 5% of celebrity ads have achieved a CCPersuasion index of 233 versus 205 for the top 5% of non-celebrity ads.  Celebrity ads retain a diminishing advantage in the top 10% and top 20%.

But there are challenges to taking full advantage of this effect, as reflected in the overall track record for celebrity ads.  Some additional insight into these challenges can be drawn from a comparison of consumer diagnostics for ads with and without celebrity presenters.  In general, feedback is less positive for celebrity ads across many diagnostic metrics.  The diagnostic elements that show the largest differences provide some insight into what commonly holds back celebrity ads from realizing their full potential:

• Importance of Main Point:  Too often a celebrity may be used as a replacement for a compelling proposition.
• Easy to Relate:  Celebrities live in a different world than the rest of us.  This presents a challenge in using them to illustrate how a brand will satisfy “our” needs in a way that is relatable.
• Ad Believability:  Consumers may be skeptical that the celebrity actually uses – or has even tried – the product and may also be cynical that the celebrity has been “bought”.
• Made Me Interested in Brand:  This illustrates the challenge of redirecting interest from the celebrity to the brand itself.

Examples: Using Celebrities Effectively

Two of the most important keys to using celebrities effectively are to ensure an appropriate fit between the celebrity’s reputation and the benefits or claims being made about the advertised product; and ensuring that the presenter does not displace the brand as the key focus of the ad.  The following examples illustrate brands that have done this effectively.

In the Epic Splits ad for Volvo Trucks, Jean Claude Van Damme describes the years of hard work that has allowed him to attain a “body crafted to perfection”.  This harmonizes with Volvo’s reputation for quality, attention to detail and heritage.  And the demonstration illustrates not just Van Damme’s amazing flexibility and balance, but also the stability and precision of Volvo’s dynamic steering system.

In his endorsement of the MicroTouch One razor, Rick Harrison’s historical expertise on consumer products, not to mention his clean shaven head, makes him a great fit for their television ad.  The ad achieves a balanced perspective by keeping the product and its attributes the main focus through ample demonstrations and time on screen.

Finally, in this spot from Taylor Swift’s on-going campaign for Cover Girl, she not only portrays beauty but also provides a realistic context for the problem of makeup removal – that is, clean makeup enables “taking off the mask”, a stage performer challenge.

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To receive a complimentary copy of our full Celebrity White Paper, please contact your MSW●ARS representative.

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Not since the advent of the television ad in 1941 has the potential for new ad formats been so great.  The emergence of digital platforms is enabling marketers to experiment with a number of new ad formats, each of which could revolutionize marketing as we know it.  Throughout 2014 we will be highlighting the most effective of the techniques being broadly adopted.

Part II: The Modern Music Ad

Music has been a fundamental ingredient of television ads from its earliest days.  When used to set the tone, break through the clutter, or provide continuity within campaigns its presence is proven to improve ad performance.   But exactly how much of a difference can music really make?  The below table shows the results for two versions of an ad with the same visuals and spoken tagline, only the music was different between the two.  Yet this single difference changed the ad from a below average performance to an above average one.

In its most refined form, music can even elevate itself from being the added spice within an ad to being its primary course.  While these “music ads” have been rarely used in the past they are now a mainstay advertising format for both the television and online media channels.  Especially when targeted to the MTV generations (X & Y), the modern music ad has taken on aspects which make it distinct from those of the past.

One of the most striking differences is in the type of brand associations created.  In its traditional form the music ties the brand to specific benefits by highlighting brand features in the lyrics.  In the modern form, the music ties the brand to specific emotions by highlighting personal experiences.   For example, contrast these two ads created 60 years apart.  While they use many of the same visual devices the music in the first links the brand to the benefit of being able to see the country while the second links the brand to deep-seated feelings of desire.

Dina Shore 1952 “See the USA in Your Chevrolet

Lana Del Rey 2012 “Burning Desire” Jaguar F-Type Launch

Another difference is in the immersive quality of the ads.  While both the traditional and modern forms cast the brand as the enabler to an experience, the modern ads take advantage of new production techniques gleaned from video games, home theater, and immersive cinema.  By analogy, if the traditional approach casts the brand as an orchestra, the modern approach casts the brand as a dance partner.

1960s Rice Krispies

2010s Weetabix

A new role which has emerged for music ads is in bringing new consumers into the brand fold as they enter the market.  Since each age group adopts music styles as their own, the use of contemporary music can help make the brand relevant to these new consumers.  When handled with care, the brand heritage can be maintained in this process with the music acting as bridge over the river of time.

1971 Coca-Cola “Teach the World to Sing” aka “Hilltop”

2005 Coca-Cola “Teach the World to Chill” aka “Chilltop”

Another application of the modern music ad is in tying a brand tightly to the equity of music celebrities.  Celebrity endorsements are among the oldest vehicles for building positive brand sentiments.  But since the early 2000s there has been a marked increase in the use of musician alignments with beauty care brands.  In these cases the music ads have the potential to move a simple endorsement to an emotional intertwining of the brand with the performer.

2012 Taylor Swift Wonderstruck “Enchanted”

As long as music remains an important part of our cultural identities, we can expect advertisers and their creative partners to invent new uses for the music ad format.