The impact of brand familiarity on online and offline media synergy

Abstract

Rooted in the Integrated Marketing Communication framework, this paper conceptualizes how brand familiarity affects online and cross-channel synergies. The empirical analysis uses Bayesian Vector Autoregressive models to estimate long-term elasticities for four brands. The authors distinguish customer-initiated communication (typically online) from firm-initiated communication (typically offline). Their results indicate that within-online synergy is higher than online-offline synergy for both familiar brands but not for both unfamiliar brands. Managers of unfamiliar brands may obtain substantial synergy from offline marketing spending, even though its direct elasticity pales in comparison with that of online media while managers of familiar brands can generate more synergy by investing in different online media.

Customer journey analyses in digital media: exploring the impact of cross-media exposure on customers' purchase decisions

“…For existing research on media synergies that investigates the effectiveness of exposure across media and channels for different brand-related conditions (e.g. Pauwels et al, 2016), our findings also suggest that companies can leverage media entropy to enhance brand-switching behaviour among customers who currently do not own the brand. Moreover, weak brands can gain more from media entropy than strong brands.…”

“…In particular, the strength of the positive link between cross-media exposure and brand purchase might depend on factors that determine how customers interpret available information (Lurie, 2004). One prominent context factor that might influence the effectiveness of exposure to different type of media on purchase decision is rooted in prior brand knowledge (Pauwels et al, 2016). Customers' previous brand ownership and perception of brand strength thus might represent important contextual variables, because they reflect customers' cumulative prior exposures to a brand's communication efforts and peer-to-peer interactions (Basuroy et al, 2006;Erdem et al, 2006).…”

Creating, Metavoicing, and Propagating: A Road Map for Understanding User Roles in Computational Advertising

“…Among the three media types, users play a dominant role in earned media, while owned media represent a hybrid of firm and user activities. Across studies, owned and earned media are found to have significant impact on sales (e.g., Pauwels et al 2016;Vieira et al 2019), but the magnitude of the impact varied. For example, while Vieira et al (2019) reported a higher impact of owned media than earned and paid media, Lovett and Staelin (2016) found paid advertising to have a larger impact for entertainment products.…”

Awareness and usage of digital marketing in Serbia

“…Thus, the reason for [40]; Serbia has one of the lowest percentages of internet users in relation to the total population -54% [53]; despite 9.2 million of mobile phone users, Serbia has a low smartphone penetration of only 23% [20], [47]. Based on this, we concluded that the advertising budgets were still predominantly channelled towards the traditional media, led by TV, taking into account low economic power, digital connectivity, unfavourable demographics and that the household media consumption is predominantly driven by middle-aged parents.…”

“…The massive information and communication technology (ICT) development and its increasing acceptance contributed to the changes in all areas of business, including marketing, assisting the consumers in bonding and communicating with each other and in establishing a two-way connection with brands, products and services [21], [23], [32]. Since the appearance of the first banner ad in 1994, online advertising has redefined the global advertising landscape [40]. Technology advancement and the changes in the consumers' media habits consequently contributed to the global rise in online advertising and the occurrence of new diverse platforms which, according to Austin and Pinkleton [3], include the services that enable customer relations management, search engine optimisation (SEO), trackable analytics, social media engagement and networking, online advertising, e-mail marketing and content-based applications.…”