- 04 Jun 2014
- What Do You Think?
Does Internet Technology Threaten Brand Loyalty?
Internet technologies may not kill off brands, but they certainly magnify both the bad and good decisions of marketers. Jim Heskett's readers weigh in on this month's question. Open for comment; 0 Comments.
- 23 Apr 2014
- HBS Case
Are Electronic Cigarettes a Public Good or Health Hazard?
A new case study by John Quelch charts the growing popularity of electronic cigarettes and how tobacco companies and regulators are responding. Open for comment; 0 Comments.
- 19 Mar 2014
- Research & Ideas
A Brand Manager’s Guide to Losing Control
Social media platforms have taken some of the marketing power away from companies and given it to consumers. Jill Avery discusses the landscape of "open source branding," wherein consumers not only discuss and disseminate branded content, they also create it. Closed for comment; 0 Comments.
- 24 Feb 2014
- Research & Ideas
Uncovering Racial Discrimination in the ‘Sharing Economy’
New research by Benjamin G. Edelman and Michael Luca shows how online marketplaces like Airbnb inadvertently fuel racial discrimination. Closed for comment; 0 Comments.
- 06 Feb 2014
- Research & Ideas
The Art of American Advertising
Harvard Business School's Baker Library is hosting a historical exhibit that examines the advertising industry in a bygone era. Open for comment; 0 Comments.
- 05 Feb 2014
- Research & Ideas
Can Putin Score Olympic Gold?
With billions of dollars on the line at this year's troubled Winter Olympics, Stephen Greyser breaks down what's at stake for the brands of NBC, key corporate sponsors, Russia—and Vladimir Putin. Open for comment; 0 Comments.
- 03 Feb 2014
- Research & Ideas
The Tricky Business of Managing Web Advertising Affiliates
Advertising through numerous website affiliates potentially helps marketers get more bang for their buck. But the far-flung systems can also lead to fraud, says Ben Edelman. What's the best way to manage your advertising network? Closed for comment; 0 Comments.
- 29 Jan 2014
- Research & Ideas
Super Bowl Ads for Multitaskers
With more than half the Super Bowl audience using smartphones or laptops at the same time they watch the big game on TV, Thales S. Teixeira says advertisers have to step up their game. Closed for comment; 0 Comments.
- 17 Jun 2013
- Research & Ideas
Advertising Symbiosis: The Key to Viral Videos
Creating an online ad that goes viral requires more than mere entertainment. Thales S. Teixeira discusses the key to creating megahit marketing through "advertising symbiosis." Closed for comment; 0 Comments.
- 29 Apr 2013
- Research & Ideas
Diagnosing the ‘Flutie Effect’ on College Marketing
Boston College, after one of the most dramatic plays in collegiate football history, benefitted with a dramatic upswing in applications. Other colleges have experienced similar upswings from sports success. In a new study, Doug J. Chung demonstrates the reality behind the "Flutie Effect," named after BC quarterback Doug Flutie. Closed for comment; 0 Comments.
- 15 Apr 2013
- Research & Ideas
Solving the Search vs. Display Advertising Quandary
Internet advertising was supposed to make it easier for marketers to measure the impact of their ad buys. But a basic question remains: Do search ads or do display ads create more customers on the web? Research by Professor Sunil Gupta. Closed for comment; 0 Comments.
- 28 Feb 2013
- Working Paper Summaries
Do Display Ads Influence Search? Attribution and Dynamics in Online Advertising
The introduction of online metrics such as click through rate (CTR) and cost per acquisition (CPA) by Google and other online advertisers has made it easy for marketing managers to justify their online ad spending in comparison to the budgets used for television and other media. However, these metrics suffer from two fundamental problems: (a) they do not account for attribution, since they give credit to the last click and ignore the impact of other ad formats that may have helped a consumer move down the conversion funnel, and (b) they ignore the dynamics, since they only account for the immediate impact of ads. As firms spend more of their ad dollars on online search and display, managers and researchers alike recognize a need for more careful attribution adjustment that takes into account the journey consumers follow before conversion as well as account for the impact of ads over time. In this paper, the authors use time series models to infer the interaction between search and display ads and also capture their impact over time. Examining data from a bank that used online advertising to acquire new customers for its checking account, the authors found that display ads have a significant impact on search applications, as well as clicks. The majority of this spillover was not instant, but took effect only after two weeks. On the other hand, search advertising did not lead to an increase in display applications. However, search ads showed significant dynamic effects on search applications that made them very cost effective in the long run. Key concepts include: Classic metrics used in practice are highly biased since they do not account for the effects documented in this study. As a result, firms may be making suboptimal budget allocation decisions. Managers should carefully consider the interaction and dynamic effects of search and display advertising. In the study, revised measures of ad effectiveness lead to a very different budget allocation than the one used currently by the firm. Even though the proposed allocation gives credit to display due to its effect on search applications, the search ad budget should be increased by 36% from its current level due to its strong dynamic effects. The display ad budget should be decreased by 31%. Closed for comment; 0 Comments.
- 29 Jan 2013
- Research & Ideas
Creating the Perfect Super Bowl Ad
Professor Thales S. Teixeira says TV viewers lose purchasing interest when ads get too caught up in entertainment. His advice for the perfect pitch: tie together a good story and a compelling brand. Closed for comment; 0 Comments.
- 19 Oct 2012
- Research & Ideas
Digital Technology’s Profound Game Change for Marketers
Within a few years, chief marketing officers will spend more on technology--digital marketing--than CIOs. Jeffrey Bussgang says it is clear that technology is radically transforming the marketing function and the role of the marketing professional. Closed for comment; 0 Comments.
- 22 Aug 2012
- Research & Ideas
Advertising: It’s Not ‘Mad Men’ Anymore
Three major forces have changed advertising since Don Draper last prowled the corridors of Sterling Cooper. Professor Emeritus Alvin J. Silk's decades of research finds an industry that, while evolving in fundamental ways, is healthy and creative. Open for comment; 0 Comments.
- 31 May 2012
- Working Paper Summaries
Conflict Policy and Advertising Agency-Client Relations: The Problem of Competing Clients Sharing a Common Agency
This paper takes a fresh look at a recurring and often contentious issue in agency-client relations: Should an advertising agency simultaneously serve competing accounts or should the agency be restricted from doing so? Professor Alvin J. Silk traces the evolution and current state of industry practices with respect to conflict norms and policies; reviews the body of conceptual and empirical research that is available about the sources and consequences of conflicts, and outlines some directions for future research to address unresolved policy issues. Key concepts include: Historically, advertising agencies in the US and Europe did not simultaneously serve accounts or clients who were competitors. Safeguards to preserve proprietary information have become an essential component of conflict policies. Rival clients may be served by separate organizational units that are under common control and/or ownership. A family of hybrid conflict policies has evolved that features elements of the split account system long practiced in Japan, augmented by safeguards that serve as partial substitutes for the umbrella prohibition on serving rivals imposed by exclusivity. By relying on safeguards and splitting account assignments among different organizational units within or across a mega-agency or holding company, clients exert a measure of control over those agencies' access to confidential information while also offering them incentives to avoid conflicts of interest. Closed for comment; 0 Comments.
- 07 Dec 2011
- Research & Ideas
Are Creative People More Dishonest?
In a series of studies, Francesca Gino and Dan Ariely found that inherently creative people tend to cheat more than noncreative people. Furthermore, they showed that inducing creative behavior tends to induce unethical behavior. It's a sobering thought in a corporate culture that champions out-of-the-box thinking. Closed for comment; 0 Comments.
- 10 Jan 2011
- Research & Ideas
Is Groupon Good for Retailers?
For retailers offering deals through the wildly popular online start-up Groupon, does the one-day publicity compensate for the deep hit to profit margins? A new working paper, "To Groupon or Not to Groupon," sets out to help small businesses decide. Harvard Business School professor Benjamin G. Edelman discusses the paper's findings. Key concepts include: Discount vouchers provide price discrimination, letting merchants attract consumers who would not ordinarily patronize their business without a major price incentive. These vouchers also benefit merchants through advertising, simply by informing consumers of a merchant's existence via e-mail. For some merchants, the benefits of offering discount vouchers are sharply reduced if individual customers buy multiple vouchers. As a marketing tool, discount vouchers are likely to be most effective for businesses that are relatively unknown and have low marginal costs. Closed for comment; 0 Comments.
- 30 Nov 2010
- Working Paper Summaries
Sponsored Links’ or ’Advertisements’?: Measuring Labeling Alternatives in Internet Search Engines
In processing a search for a particular phrase, Internet search engines generally offer two types of results: the algorithmic results, which a search engine selects based on relevance, and the "sponsored links," for which advertisers pay. The latter often occupy prominent screen space. But does the average web surfer realize that they are advertisements? In an online experiment, Harvard Business School professor Benjamin Edelman and doctoral candidate Duncan S. Gilchrist show that "sponsored link" is too vague a term for some users to understand, and that "paid advertisement" is a label that better clarifies the nature of the link. They call on the FTC to compel search engines to improve their disclosures. Key concepts include: Through October 2010, leading search engines Google, Yahoo!, and Bing presented their advertisements with the labels "sponsored links," "sponsored results," and "sponsored sites," respectively. (In November, Google substituted the term "ads.") In an online experiment that replaced these labels with the term "paid advertisement," users were up to 33 percent less likely to click on the sponsored link. Certain categories of users were particularly influenced by the improved label. The improved labels had largest effect on users without college degrees, users with annual income below $100,000, and users who utilize the web less than 12 hours per week. The Federal Trade Commission has called for "clear and conspicuous disclosures" to label search advertisements. Because available evidence suggests users do not understand widely used labels, the researchers believe the FTC should require search engines to use the label "advertisement" or "paid advertisement" rather than vague or easily overlooked alternatives. Closed for comment; 0 Comments.
Digital Initiative Summit: Big Messages, Small Screens, Many Choices
How do companies profit from the fact that mobile users are more engaged than ever? Panelists discuss "Monetization in a Mobile World." Open for comment; 0 Comments.