Dr. Rick Wilson on Attribution and What Advertisers Should Do in a Recession

Today’s podcast guest is Dr. Rick Wilson, Associate Professor at Texas State University San Marcos, has written extensively about the impact and effectiveness of out of home advertising.

Here are some highlights.

Rick Wilson, Associate Professor of Marketing, Texas State University

How did you get involved in studying out of home advertising?

The short answer is that my dissertation to get my doctorate degree…was on out of home advertising…I’ve always been fascinated by out of home.  I love the physicality of it, they way for it to reference the activity you are doing, the way for it to…break through the clutter.

You did a 2019 attribution study for the OAAA.  What did you do and what did you learn?

They asked me to review a number of case studies where the media partners that they used looked at various promotions to see which types of out of home advertising was able to drive sales or recognition or recall and compare that to a control group that was not exposed to the same out of home advertising.  Across the 45 different case studies…there was a dramatic increase in whatever variable that they were measuring to judge effectiveness and in some cases the most popular variable looked at was store visits and that increased by 89% compared to the control group…There were a number of difference outcomes they looked at beyond store visits.  For example, recall of the brand…they saw a 39% lift…and then also purchase intent…that saw a 23% increase compared to the control group.

Creativity does not to increase ad effectiveness unless out of home is placed properly.

The industry frequently…uses as a selling point that out of home is a creative medium and can really break through clutter and get noticed and while that is the case some of the research that I reviewed…suggested that…creativity by itself isn’t going to break through the clutter unless the ad is situated in an environment where it is more prominent.  Whether that means the size of the ad or billboard…it’s in the line of sight…and it’s not in an environment where it is visually complex…It’s one thing to develop an ad that’s creative.  But it’s another thing to make sure that the ad is placed somewhere where it has a greater likelihood of being seen…Advertisers and media planners need to take a stronger role in selecting media locations for ads…It’s not enough to just buy a bunch of billboards in a market to get coverage.  I think you need to think a little bit deeper.

Advertising in a recession.

When we see a recession, it’s not the time to reduce your advertising budget.  It’s the time to think differently about your advertising budget, because what are consumers doing.  They’re doing things differently.  Their behavior is changing.  They are looking for ways to save money.  They are still spending but just spending differently…Think about the message that you are delivering…They are thinking about value as opposed to some of the functions and features which they have been thinking about in the past…Think about how the activities are changing.  We saw this during the covid epidemic.  People were driving less or they were driving differently.

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