Modeling the Economic Efficiency of Advertising

The development of the economy and trade has led to the widespread use of advertising and the need for its constant improvement. There is a vast field of advertising theory. This paper proposes an information model of the functioning of advertising. We introduce ideas about useful and harmful (excess) information. The concept of user’s thesaurus is also introduced. The effectiveness of advertising is determined by the mutual influence of useful and redundant information. Differential equations are formulated on this basis, the solution of which allows to establish the patterns of the influence of psychological characteristics of users and the mode of presentation of information on the effectiveness of advertising.

[1]  Xiaojing Yang,et al.  Toward a General Theory of Creativity in Advertising: Examining the Role of Divergence , 2004 .

[2]  Ronald J. Faber,et al.  Advertising Theory: Reconceptualizing the Building Blocks , 2004 .

[3]  Alina Vinkovska,et al.  Information model of the economic efficiency of advertising , 2019, SHS Web of Conferences.

[4]  Brian D. Till,et al.  Endorsers in Advertising: The Case of Negative Celebrity Information , 1998 .

[5]  Benjamin Lipstein.  A Mathematical Model of Consumer Behavior , 1965 .

[6]  Tom Reichert.  Sex in Advertising Research: A Review of Content, Effects, and Functions of Sexual Information in Consumer Advertising , 2002, Annual review of sex research.

[7]  R. N. SCHWARTZ,et al.  Interstellar and Interplanetary Communication by Optical Masers , 1961, Nature.

[8]  M. M. Bongard,et al.  Pattern Recognition , 2018, Encyclopedia of Social Network Analysis and Mining. 2nd Ed..

[9]  Igor Lutoshkin.  Modeling a response function to frequency of advertising , 2010 .

[10]  Scot Burton,et al.  Consumer Generalization of Nutrient Content Claims in Advertising , 1998 .

[11]  Raymond R. Burke,et al.  Competitive Interference and Consumer Memory for Advertising , 1988 .

[12]  I. Lutoshkin,et al.  The Dynamic Model of Advertising Costs with Continuously Distributed Lags ? , 2017 .

[13]  John C. S. Lui,et al.  Mathematical Modeling of Advertisement and Influence Spread in Social Networks , 2009 .

[14]  Marc Scholten,et al.  Lost and found: The information-processing model of advertising effectiveness , 1996 .

[15]  R. Batra,et al.  Situational Effects of Advertising Repetition: The Moderating Influence of Motivation, Ability, and Opportunity to Respond , 1986 .

[16]  北村 聖.  "The New England Journal of Medicine". , 1962, British medical journal.

[17]  Michael Etgar,et al.  An Experimental Investigation of Comparative Advertising: Impact of Message Appeal, Information Load, and Utility of Product Class , 1980 .

[18]  M. Hussain,et al.  Impact of Unethical Advertising, Misleading Information or Deceptive Advertising on Customer Purchasing Intention with Mediating Effect of Word of Mouth: Case of Pakistan , 2015 .

[19]  Kevin M. Murphy,et al.  A Simple Theory of Advertising as a Good , 1993 .

[20]  S. Wolfe.  Direct-to-consumer advertising--education or emotion promotion? , 2002, The New England journal of medicine.

[21]  Hubert A. Zielske.  The Remembering and Forgetting of Advertising , 1959 .

[22]  Veronica Olsson,et al.  Humor in Advertising , 2005 .

[23]  Bruce L. Stern,et al.  An Analysis of Information Content in Television Advertising , 1977 .

[24]  W. Shih.  Optimal inventory policies when stockouts result from defective products , 1980 .

[25]  Alberto Acerbi,et al.  The Role of Redundant Information in Cultural Transmission and Cultural Stabilization , 2016, Journal of comparative psychology.

[26]  J. Aspara,et al.  Can Advertising Investments Counter the Negative Impact of Shareholder Complaints on Firm Value? , 2019, Journal of Marketing.

[27]  Gary A. Steiner,et al.  A Model for Predictive Measurements of Advertising Effectiveness , 1961 .

[28]  Richard A. Ippolito.  Consumer Reaction to Measures of Poor Quality: Evidence from the Mutual Fund Industry , 1992, The Journal of Law and Economics.

[29]  Malaika Brengman,et al.  The influence of advertising on compulsive buying – The role of persuasion knowledge , 2013, Journal of behavioral addictions.

[30]  INFORMATIVE ADVERTISING: A MARKET INFORMATION PROVIDER OR A SEED OF MARKET POWER? , 2012 .

[31]  R. Hartl,et al.  Dynamic Optimal Control Models in Advertising: Recent Developments , 1994 .

[32]  Elizabeth F. Loftus,et al.  HOW AND WHEN ADVERTISING CAN INFLUENCE MEMORY FOR CONSUMER EXPERIENCE , 2004 .

[33]  Özlem Coşgun,et al.  Application of a Mathematical Model to an Advertisement Reservation Problem , 2013 .

[34]  A. M. Lee,et al.  Some Optimization Problems in Advertising Media Planning , 1960 .

[35]  J. Donnelly.  Attitudes toward Culture and Approach to International Advertising , 1970 .

[36]  Zain-ul-Abideen.  Effective advertising and its influence on consumer buying behavior , 2012 .

[37]  Ronald J. Faber,et al.  Advertising and the Consumer Information Environment Online , 2004 .

[38]  S. Chapman.  Advertising as information , 1999 .

[39]  How to avoid marketing disasters: back to the basic communications model, but with some updates illustrating the importance of e-word-of-mouth research , 2017 .