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The Waste in Advertising Is the Part That Works
Abstract
This study shows that waste the perceived extravagance of an advertisement contributes to advertising effectiveness by increasing credibility. It draws especially on the Handicap Principle in biology: animals use wasteful characteristics to signal their exceptional biological fitness. It hypothesizes that excesses in advertising work in a similar way by signaling brand fitness. TV advertisements were evaluated online for perceived advertising expense, message, brand familiarity, quality, reliability, and likelihood of choosing. High perceived advertising expense enhances an advertisement s persuasiveness significantly, but largely indirectly, by strengthening perceptions of brand quality.
... An economist, Nelson (1970;1974), was the first to successfully model this concept, demonstrating that the 'unobservable' qualities of advertising perform a signaling role beyond the information communicated by the advertising content. Ambler and Hollier (2004) later proposed that advertising was merely following the laws of nature whereby 'wasteful' displays of extravagance were important signals of biological strength and fitness. In a laboratory study, Ambler and Hollier (2004) found that perceived television advertising expenditure correlated positively with perceived product quality. ...
... Ambler and Hollier (2004) later proposed that advertising was merely following the laws of nature whereby 'wasteful' displays of extravagance were important signals of biological strength and fitness. In a laboratory study, Ambler and Hollier (2004) found that perceived television advertising expenditure correlated positively with perceived product quality. Dahlén, Rosengren and Törn (2008) extended this theory to include advertising creativity specifically, finding that "wasteful creativity (i.e., surplus creativity that does not add to the functionality of the advertisement) could work as a signal... on behalf of the sender" (p. ...
... Advertising is understood to send signals in several different ways. Advertising expenditure is said to communicate product quality because a company wouldn't invest funds they weren't confident of recouping through product sales (Ambler and Hollier 2004;Kihlstrom and Riordan 1984;Kirmani and Wright 1989;Nelson 1974). Advertisement size similarly demonstrates a company's confidence in their product: The bigger the ad, the more investment is required (Ambler and Hollier 2004;Kirmani 1997;Nelson 1974). ...
... As the brand behavior at the center of our research is expressing gratitude, this research also contributes to the less commonly studied but prevalent practice of brand-expressed gratitude Folse 2009, 2011). Further, by examining variations in gratitude expression strategies based on effort and identification with the gratitude target, our research contributes to existing work on the effort heuristic (Grewal and Stephen 2019; Kruger et al. 2004), perceptions of effort in advertising (Ambler and Hollier 2004;Chang 2011;Liljedal, Berg, and Dahlén 2020;Modig, Dahlén, and Colliander 2014), and identification (Turner et al. 1987). In doing so, we contribute to existing theory and provide detailed managerial recommendations for sincere brands wishing to express gratitude. ...
... For example, store design and sales agents' assistance can signal effort (Morales 2005). In the context of advertising, cause marketing campaigns (Ellen, Mohr, and Webb 2000;Langan and Kumar 2019), perceived advertising expense (Ambler and Hollier 2004), advertising creativity (Modig, Dahlén, and Colliander 2014), and nonstereotyped gender role portrayals (Liljedal, Berg, and Dahlén 2020) also serve as cues that the brand has behaved in an effortful manner. ...
... Likewise, in studying retailer effort, Morales (2005) finds that consumers react positively to extra effort, reporting higher willingness to pay and increased visitation intentions. Additional evidence shows that consumers respond more positively to effortful advertising campaigns on a variety of brand constructs such as interest, attitudes, quality, and word-of-mouth intentions (Ambler and Hollier 2004;Ellen, Mohr, and Webb 2000;Langan and Kumar 2019;Liljedal, Berg, and Dahlén 2020;Modig, Dahlén, and Colliander 2014). ...
This research investigates the use of advertised gratitude expressions by sincere brands. As sincere brands are well aligned with gratitude expressions, we theorize that a messaging strategy solely expressing gratitude fails to yield brand benefits beyond a message where gratitude is not expressed. However, sincere brands can reap more brand benefits when their advertised gratitude expression is perceived as effortful (e.g., thank you message coupled with a free product). We demonstrate that when sincere brands engage in these high-effort expressions of gratitude, consumers evaluate the brand more positively, an effect mediated by brand trust. We also explore when sincere brands may benefit from low-effort gratitude expressions. Specifically, we find that consumer reactions to low-effort acknowledgments are more favorable when consumers identify with the gratitude target. Based on these findings, we detail our contributions to theory and provide managerial implications for sincere brands wishing to express gratitude.
... The art of manipulating visual space in the marketplace wields considerable influence on consumer behavior. While past research has long extolled the merits of ample visual space (Ambler & Hollier, 2004;Kirmani, 1990;Pracejus et al., 2013), contemporary marketing practices often overload consumers with information in restricted visual space. This trend piques our interest in exploring how to better utilize limited visual space to promote purchase decisions. ...
... The role of visual space is a cornerstone of understanding how individuals interact with marketing communications. Scholars and practitioners agree that generous visual space in advertising and product displays conveys sophistication, power, and leadership (e.g., Homer, 1995;Jacobs, 1972), reflecting a refined taste linked to higher social classes (Ambler & Hollier, 2004;Kirmani, 1990;Pracejus et al., 2013). Contrary to this conventional wisdom, the current digital era-with its space constraints and information overload-challenges the application of expansive visual space. ...
In an era where consumers frequently encounter product information within confined visual space, understanding how to better utilize such spatial constraints is vital. We propose and demonstrate that consumers are more likely to make a purchase when product displays feature precise (vs. round) numbers within limited interstitial space, compared to when space is abundant. We further reveal that this effect is mediated by levels of arousal induced by precise (vs. round) numbers in limited space. Moreover, when consumers are already in a state of heightened arousal and when the assortment size is large, this effect is weakened. These findings extend the literature on visual spacing and numerical cognition, offering novel insights into effective marketing practices.
... traditionalism), thus boosting consumer attitudes toward those brands (Cian et al., 2014), and stylistic manipulations such as tilting a logo increase consumer visual engagement. Similarly, introducing an AWS element in logo design in contrast to passive white space improves the perception of product quality, brand prestige, and aesthetics (Ambler and Hollier, 2004). For example, the Qatar airline logo incorporates an active white line (AWS) making a circle on the head of the antelope, the national animal of Qatar. ...
... 39 In other words, even if the creative effort may initially appear to be "wasted", 40 it can serve as a signal of effort and "brand fitness" to potential consumers. 41 Therefore, by incorporating the genres and aesthetics of other creative industries into adver tising campaigns, brands may convey their inherent values more authentically while also appealing to consumers through creativity and innovation. At the same time, they may signal a sense of cultural relevance and connectedness, potentially further improving brand image and consumer perception. ...
In the concluding chapter, advertising is explored as a regime of paradoxes. As the industry grapples with the tension between established practices and the need for fluidity and constant change, dominant values struggle to maintain their hold. Key tensions include those surrounding creative effectiveness, artistry, collaboration, and the notion of “cool”, which speaks to the current state of advertising within the larger realm of the creative industries. The chapter also looks into the direct implications of these notions for practice and explores how understanding the contradictions within the advertising industry can be a valuable tool for professionals as they inform the roles, dynamics, and environment of advertising.
... For example, sophisticated production techniques signal to consumers that the associated advertising is expensive. This leads consumers to surmise that the company in question is more confident in the products it promotes (as the company would not devote so many resources otherwise) and that the company's products are therefore of higher quality (Ambler and Hollier 2004). Believing in the high quality of brands and products that they partner with, influencers signal an unobservable quality to followers. ...
Social media influencers (SMIs) have become an efficient advertising tool. However, their roles vis-à-vis the brands for which they advertise are changing. Far from being just simple promoters anymore they now take active part in both the product and communications development of firms. Yet in advertising research, a discussion of these new roles is absent. This article, therefore, seeks to categorize the roles influencers play in advertising collaborations by means of an empirical typology. In a netnographic study, we investigate the posts of 21 fashion influencers over a period of three years and find three main roles (spokesperson, cocreator, or co-owner) and eight subroles (for spokesperson: billboard, stylist, and ambassador; for cocreator: consultant and codesigner; for co-owner: sole proprietor, facilitator, and partner) that influencers take on in relation to brands. We contribute to theory on influencer marketing by conceptualizing influencer roles in advertising collaborations as well as categorizing these roles, thus allowing future researchers to use our typology as a conceptual foundation. Another contribution is the insight into how the dynamics of control over product and communication creation is evolving in influencer collaborations.
White space (empty space) is an important factor in visual ad design, yet few studies focus on the specific types of white space and their influence on ad design. In this research, we systematically review white space literature; identify two types of white space, termed interspace (space in between a product layout) and circumspace (space surrounding a product layout); and investigate their effects on product layout perceptions. In four studies, we propose a not yet widely adopted practice: When holding the total white space constant, a lower interspace/circumspace ratio (more compressed product layout), compared with a higher interspace/circumspace ratio (less compressed product layout), can increase the perceived entitativity (i.e., perception of a unit as a group) of a collection of products in an ad and, ultimately, ad evaluation, purchase intentions, and click-through rates (CTRs). We further rule out potential alternative explanations and identify a theoretically and practically relevant boundary condition: If the products are framed as conceptually dissimilar, the perception of entitativity becomes less important, which reduces ad performance. We conclude by discussing the theoretical and practical implications of our research.
This research demonstrates that interstitial space in textual brand logos—that is, spacious (vs. compact) arrangement of letters—unfavorably influences brand attitude by reducing product safety perceptions. When potential threats are salient, the effect tends to occur within tight (but not loose) cultures, characterized by sensitivity to threats and a need for rigid social structures. When threats are not salient, the effect appears to occur across cultures. Five studies, including lab and field experiments, as well as archival dataset analysis, provide supportive evidence.
This consumer study is based on the theory that the effectiveness of advertising is affected by how consumers feel about advertising and tested the hypothesis that American consumers overestimate the amount of money that manufacturers and retailers spend to advertise their products and services. The author surveyed a representative sample of 332 adult male and female consumers who live in the northernmost eight counties of New Jersey. Respondents were asked to judge how much companies spend to advertise 20 categories of consumer products and services. The author found strong confirmation of the research hypothesis, across all product categories and consumer segments.