Skip to contentSkip to navigation

Exploring the Value of an Advertisement

Advertising can do much to increase brand awareness, but even persuasive ads do not change consumer opinions about the quality of the products being advertised.

(originally published by Booz & Company)

Title:
Information or Persuasion? An Empirical Investigation of the Effect of Advertising on Brand Awareness and Perceived Quality Using Panel Data

Authors:
C. Robert Clark, Ulrich Doraszelski, and Michaela Draganska

Publisher:
Stanford University Graduate School of Business, Research Paper No. 1971

Date Published:
July 2007

In this study, the authors sought to understand how advertising affects consumer opinion of products and whether it boosts brand awareness. They analyzed data on more than 300 brands across 19 categories, including five years of data from Brandweek’s Superbrand survey and Harris Interactive’s Equibrand survey.

Bottom Line:
Advertising can do much to increase brand awareness, but even persuasive ads do not change consumer opinions about the quality of the products being advertised.

 

Get s+b's award-winning newsletter delivered to your inbox. Sign up No, thanks
Illustration of flying birds delivering information
Get the newsletter

Sign up now to get our top insights on business strategy and management trends, delivered straight to your inbox twice a week.