Informational and Non-Informational Advertising Content

84 Pages Posted: 1 Dec 2020

See all articles by Yi-Lin Tsai

Yi-Lin Tsai

University of Delaware - Alfred Lerner College of Business and Economics

Elisabeth Honka

University of California, Los Angeles (UCLA) - Anderson School of Management

Date Written: July 30, 2020

Abstract

We investigate the relationship between both advertising content and quantity and several stages of consumers' decision-making, namely, unaided and aided awareness, consideration, and purchase. Understanding how the amount and content of advertisements affect consumers' decision-making is crucial for companies to effectively and efficiently use their advertising budgets. Spanning a time period from 2010 to 2016, we combine a unique data set on TV advertising content and quantities with individual-level data containing information on purchases, consideration and awareness sets, demographic variables, and perceived prices. Our results reveal that advertising quantity significantly increases consumer (unaided and aided) awareness, but has no effect on conditional consideration and conditional purchase. However, when measuring the separate effects of different types of advertising content, we find a more nuanced set of results: advertising only containing non-informational content increases unaided awareness, while advertising only containing informational content increases aided awareness. Advertising with both informational and non-informational content affects shoppers' but not non-shoppers' awareness and the awareness of other groups of involved consumers.

Keywords: Advertising, Advertising Content, Purchase Funnel, Auto Insurance Industry

JEL Classification: D83, G22, M37

Suggested Citation

Tsai, Yi-Lin and Honka, Elisabeth, Informational and Non-Informational Advertising Content (July 30, 2020). Available at SSRN: https://ssrn.com/abstract=3706665 or http://dx.doi.org/10.2139/ssrn.3706665

Yi-Lin Tsai

University of Delaware - Alfred Lerner College of Business and Economics ( email )

Newark, DE 19716
United States

HOME PAGE: http://yilint.com

Elisabeth Honka (Contact Author)

University of California, Los Angeles (UCLA) - Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

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