A LARGE-SCALE INVESTIGATION OF AD-TO-AD SPILLOVER EFFECTS IN TELEVISION ADVERTISING

Abstract

Television advertising remains a crucial component of many companies\u27 marketing strategies, as it offers a powerful platform to reach a broad audience and promote brand awareness. However, the effectiveness of television advertisements can be influenced by various factors. Content, ad characteristics, and airing characteristics play a vital role in marketing strategies, serving as powerful tools to engage and influence target audiences. In an era of information overload and short attention spans, compelling and valuable strategies have become essential for capturing and retaining viewer’s interest. Airing characteristics like the order in which different brands\u27 ads are displayed during commercial breaks. This phenomenon, known as the spillover effect, suggests that the presence of certain brands\u27 advertisements may impact the viewership or interruption rates of subsequent ads, potentially leading to significant consequences for advertisers and television networks.This dissertation investigates how the sequence of ads affects audience engagement, specifically focusing on the interruption rate of the following ad that could be influenced by the lead-in ad, while controlling for other factors. This phenomenon is referred to as the spillover effect of the lead-in ad. The study aims to examine how the content of the juxtaposed ads impacts viewer engagement of the following ad, considering the potential consequences for advertisers and television networks. Essay 1 examines the spillover effect of event-related advertising, such as political ads during election seasons, tax preparation ads during filing seasons, or promotional campaigns for highly anticipated movie releases, on subsequent brand advertising. The significance of these events can fluctuate over time, potentially altering the spillover effect on brand ads throughout the event cycle. It\u27s crucial to analyze how event-related ads influence viewer engagement and receptivity to brand advertising. The saturation of media with event-specific messaging risks causing information overload, diminishing attention spans for brand ads. For instance, the high frequency of political ads during elections may lead viewers to tune out subsequent brand messaging. Moreover, the messaging strategies employed in event-related advertising can spillover to impact viewer responses to brand ads. Political campaigns often utilize emotionally charged appeals, controversial claims, and negative attacks to capture voters\u27 attention. Similarly, tax preparation ads may play on anxiety or urgency around filing deadlines. Such tactics could positively or negatively influence how viewers perceive and respond to subsequent brand ads, affecting their effectiveness. Understanding these dynamics of how event-related ad frequency and messaging strategies spillover to impact brand advertising is vital for companies. It allows them to adjust their marketing approaches proactively during these periods, ensuring their brand messaging remains impactful and resonates with the target audience amid the cluttered media landscape. Essay 2 investigates the broader understanding of consumer behavior and advertising effectiveness, shedding light on the complex interplay between brand perceptions, ad sequencing, and viewer engagement. Our analysis, encompassing TV ads from 100 brands across diverse product categories, reveals a distinct shift in viewers\u27 behavior towards subsequent ads, with different brands exhibiting varying degrees of spillover effects. The study represents heterogeneity in the spillover effects across different brand campaigns. Interestingly, as viewer engagement with a specific brand ad decreases, subsequent brand ads tend to experience a more positive spillover effect. By quantifying these spillover effects, this study offers a data-driven approach to informed decision-making in the realm of television advertising. Advertisers and media platforms can leverage these insights to maximize the return on their marketing investments. The study provides a deeper understanding of how ad sequencing, brand perceptions, and viewer engagement interact, enabling more strategic ad placement and campaign planning. Furthermore, the findings highlight the importance of considering spillover effects when evaluating advertising effectiveness. Brand ads cannot be viewed in isolation, as their impact is influenced by preceding ads and the overall media environment. This study equips advertisers with a comprehensive framework to account for these spillover dynamics, leading to more accurate assessments of ad performance and better optimization of advertising strategies