Exploring The Comparative Communications Effectiveness of Advertising and Media Placement Initial Fi

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Exploring The Comparative Communications
Effectiveness of Advertising and Media
PlacementInitial Findings

• An Experimental Study Conducted By
• Dr. David Michaelson
• Dr. Don Winslow Stacks

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The Assumption

• Editorial coverage through public relations
  activities has a value that is greater than an
  equivalent advertisement
• Common assumption is that value of public
  relations placements is upwards to three time
  greater than advertising if messages are the same

Often expressed as advertising value
equivalence or AVE
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The Reality

• To date, this increased value of public relations
  activities resulting in editorial coverage
  remains an assumption
• Other than Michaelson Stacks (2004), there has
  never been a definitive test or experiment to
  determine if an increased value of public
  relations placements actually exists

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The Research Objective

• Determine if editorial coverage and advertising
  perform differently on key measures
• Credibility of and homophily of message
• Brand knowledge
• Brand image and attributes
• Brand purchase intent or interest
• If differences do exist, do they support the
  concept that the performance of public relations
  efforts is greater than advertising?

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Definitions

• Credibility ethos the believability or trust
  in a source
• Authoritativeness, e.g.,
• Respect
• Intelligence
• Information
• Character, e.g.,
• Honesty
• Reputation
• Pleasant or goodness

• Homophily the similarity between a source and
  individual
• Attitudinal
• Reflects how people think about others as similar
  to themselves
• Behavioral
• Reflects how people expect to behave as similar
  to themselves

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Definitions, continued

• Awareness
• Knowledge that a product or brand exists
• However, depth of information may be quite
  limited beyond the basic level of product or
  brand recognition

• Purchase Intent
• The stated likelihood to buy a particular product
  or brand
• This likelihood is often based on exposure to
  communications that describe the product or brand
  and its benefits

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History of This Project

• Initial study conducted in 2004 among students at
  University of Miami
• The hypothesis was that advertising and editorial
  coverage have equivalent performance on key
  measures was not supported
• In essence the editorial coverage may not have
  greater impact or effectiveness
• Findings, however not definitive
• Limited geography
• Small sample consisting only of students

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History of This Project

• Outside funding provided resources for first
  phase of study that tests for the comparative
  effectiveness of editorial coverage and
  advertising among national sample of newspaper
  readers

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Research Design

• Sample of 351 adults who read a newspaper at
  least once a week
• Sample divided into three parts
• 150 respondents exposed to advertising message
  only
• 150 respondents exposed to news article only
• 51 respondents not exposed to any test materials
  and function as control group

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Research Design

• Each respondent asked to complete
  self-administered questionnaire after exposure to
  test materials
• Sample weighted to reflect demographic profile of
  actual newspaper readers
• Each test cell statistically matched to eliminate
  biases in responses that may be associated with
  demographic differences

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Research Design

• Data collected in five locations throughout the
  continental U.S.
• Interviews conducted in March 2006 at malls in
  the following locations
• 1) Baltimore, MD
• 2) Duluth, GA (Suburb of Atlanta)
• 3) West Dundee, IL (Suburb of Chicago)
• 4) Fort Worth, TX
• 5) Santa Ana, CA (South of Los Angeles)

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Test Concept

• Created product specifically created for this
  experiment to eliminate bias that may be
  associated with specific brand preferences
• Product is snack food called Zip Chips that has
  no sodium or fats
• Advertising and news article created with
  parallel messages

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What We Learned

• There are differences between the impact of
  advertising and the impact of a news article
• But, these are not differences you might have
  expected

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What We Found

• Zip Chips brand recognition was significantly
  higher than five competitors (all major national
  brands)
• No statistically significant difference between
  ad and editorial
• But, significantly greater recognition than
  control group
• Therefore experimental manipulation confirmed

Zip Chip Brand Awareness
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What We Found
Zip Chip Brand Believability

• No statistically significant difference between
  ad and editorial groups on believability

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What We Found
Zip Chip Brand Information

• Increased information does not translate into
  increased believability

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What We Found

• No statistically significant difference in
  purchase interest between ad and editorial
• However, those reading editorial showed less
  variance in overall interest

Zip Chip Purchase Intent
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What We Found

• Ad and editorial contributed equally to
  perceptions of brand attributes
• On composite and individual attribute questions

Zip Chip Brand Attribute Ratings
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What We Found
Zip Chip Brand Preference

• Preference for Zip Chips identical regardless of
  source of information

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What We Found

• High level of uncertainty about Zip Chips likely
  due to single exposure to a new brand
• Makes composite analysis of product credibility
  and product homophily challenging
• However, analysis of 14 credibility or homophily
  statements commonly used in research provided
  some insight when dont knows were examined by
  medium

• Of the 14 statements tested, dont know
  frequencies were lower for editorial in 12 cases
• Equivalent levels of dont know responses not
  found on other measures
• In addition, there was a lack of significant
  differences between ad and editorial in 12 of 14
  statements tested

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Homophily Statements

• Credibility of Character
• The product has been presented honestly.
• Based on what I know of it, this product is very
  good.
• This product is very consumer unfriendly.
• Based on what I know of it, I find this product
  quite pleasant to use.
• This product is awful.
• Credibility of Authority
• Based on what I know of it, this product is an
  excellent choice for me.
• This product is a value for its price.
• I think this product is very reliable.

• Attitude Homophily
• This product is something that is like me.
• People who buy this product are very much like
  me.
• I would purchase this product because it reflects
  my lifestyle.
• Behavior Homophily
• This product is used by people in my economic
  class.
• This product reflects my social background.
• People who use this product are culturally
  similar to me.

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Homophily Statements
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What We Found
Homophily Analysis
No significant differences between ad/story for
either credibility measure (pgt.05) Significant
differences between ad/story for both homophily
measures (plt.05)
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What Are The Implications?

• Unwarranted Assumption or Fact? Is editorial
  coverage more effective than advertising?
• If assumption, what does this mean for the public
  relations profession?
• If assumption, what does this mean for systematic
  public relations measurement?
• If assumption, what what does this mean for the
  role of public relations in the broader
  communications world?

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What Are The Implications?

• If fact,
• What is the relative value?
• How does the it work?
• Is it positive, neutral or negative?
• Are there multiple multipliers?
• Is the it linear?
• What is the role of frequency for each medium as
  it relates to relative value?

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Where Do We Go From Here?

• Take into account brand comparisons to better
  understand the relationship between media and
  outcome
• Create a more complex study allowing for multiple
  comparisons while extending the two studies
  conducted
• Refine brand credibility and homophily measures
  as related to medium

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Exploring The Comparative Communications
Effectiveness of Advertising and Media
PlacementInitial Findings

• An Experimental Study Conducted By
• Dr. David Michaelson
• Dr. Don Winslow Stacks