01-Conceptualizing the Evolution and Future of Advertising

Journal of Advertising
ISSN: 0091-3367 (Print) 1557-7805 (Online) Journal homepage: www.tandfonline.com/journals/ujoa20
Conceptualizing the Evolution and Future of

Advertising
V. Kumar & Shaphali Gupta
To cite this article: V. Kumar & Shaphali Gupta (2016) Conceptualizing the Evolution and Future
of Advertising, Journal of Advertising, 45:3, 302-317, DOI: 10.1080/00913367.2016.1199335
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Journal of Advertising, 45(3), 302–317
Copyright Ó 2016, American Academy of Advertising
ISSN: 0091-3367 print / 1557-7805 online
DOI: 10.1080/00913367.2016.1199335
Conceptualizing the Evolution and Future of Advertising
V. Kumar
Georgia State University, Atlanta, Georgia, USA
Shaphali Gupta
Management Development Institute, Gurgaon, India
television, when you log on to your social media network,

Technology has irreversibly changed the way that firms when you drive by attractive flex signage and banners outside
identify who is more likely to buy, what they are more likely to stores, and when you read a newspaper. Marketers are relent-
buy, when they are more likely to buy, why they are likely to buy, lessly seeking your attention and subtly entering your system
and how they are likely to buy, repurchase, and recommend. It is and touching your senses. The primitive history of advertising
now easier than ever for firms to have a body of evidence in the
form of actual insights, as opposed to having mere guestimates,
can be dated to the beginning of civilization, with word-of-
on consumers’ apparent intentions to buy. Power dynamics have mouth advertising by hawkers announcing and publicizing
changed in the marketing climate, and firms have to factor in not their articles for sale and merchants roaming from town to
only aggressive competitors but also empowered customers with town spreading awareness of their art and goods. However,
limited attention spans. In such a climate, what lies in the future over the past hundred years, it has evolved from having one
for advertising? And how can marketing managers make the
most of the changing climate and maximize their returns on
simple objective of informing people about products and serv-
advertising? How can academics advance research related to ices to being a highly sophisticated and personalized tool of
maximizing the effectiveness and efficiency of advertising? These persuasion, from being restricted to print media and transcend-
are the questions that this article addresses via an integrated ing to digital media, followed by revolutionized interactive
framework that expounds all the factors related to customers, social media and mobile short message service (SMS). Even
firms, technological environment, and data resources, as well as
the contextual factors, including product life cycle, customer life
so, sailing through various stages and media, advertising has
cycle, and so on, and their collective impact on advertising come full circle by stopping right back at the word-of-mouth
strategy, which includes advertising content, media selection, promotion stage. The big question here is this: Will advertising
message, and targeting. keep rolling in the same circle or, with the current technologi-
cal and digital advancements, will it take an unprecedented
path?
Advertising has an ability to move markets and minds, Product proliferation, easy Internet connectivity, and social
products and perceptions. It interests, intrigues, entices, enter- media have radically changed the advertising space. With this
tains, and creates lifestyles. It builds a relationship between change, however, come many challenges. Today, consumers
customers and brands (Jaishri and Shruti 2006). Ads are are not only better informed but are also better connected with
everywhere. You are woken up by a ping on your mobile the rest of the world. They no longer trust advertisements until
phone; it is there when you switch on your radio and endorsed by personal or virtual positive word of mouth by
credible sources. At the same time, the proliferation of multi-
Address correspondence to V. Kumar, Tower Place 200, national firms has brought several new challenges to the ad
Suite 204, 3348 Peachtree Road NE, Atlanta, GA 30326. world, such as issues related to cultural relatability and appro-
E-mail: [email protected] priation, technological exposure, and consumer perception.
V. Kumar (PhD, University of Texas at Austin) is a Regents
Professor, Richard and Susan Lenny Distinguished Chair Professor, Digitization has drastically transformed the overall media
Executive Director, Centre for Excellence in Brand and Customer space, leading to increased investments in Internet advertising.
Management, J. Mack Robinson College of Business, Georgia State Moreover, the increasing penetration of tablets, smartphones,
University. He is also a Chang Jiang Scholar, HUST, China; Lee and mobile applications ensures that global mobile advertising
Kong Chian Fellow, Singapore Management University, Singapore; spending in digital media continues to increase. At the same
and ISB Senior Fellow, Indian School of Business, India.
Shaphali Gupta (PhD, Indian Institute of Technology Bombay, time, the steady decline in the audience for print media
Mumbai) is an Assistant Professor of Marketing, Management Devel- has adversely impacted print advertising. Digital media adver-
opment Institute, Gurgaon, India. tising spending is increasing at the cost of print media
302
CONCEPTUALIZING THE EVOLUTION AND FUTURE OF ADVERTISING 303
investments, and it is foreseeable that they will continue on However, as shown in the Figure 1 framework, a few contex-
this upward trajectory. tual factors exist that moderate the relationship between the
The objective of this article is to look briefly into the evolution macro factors and the firm’s future advertising strategy. These
of advertising and dwell deeply upon the future of advertising. include the product life cycle, customer life cycle, location
What it will be? Which vehicle will be most impactful and effec- (categorized as per country’s development index/developed
tive in the next decade? Which medium will consumers trust the and emerging countries), mobile disruption, product category,
most and why? Where should the large chunk of marketing resour- competitive intensity, and consumers’ willingness to go digi-
ces go, and on what basis should they be allocated? What exactly tal. The framework further emphasizes how firms should be
influences consumers today? Through an integrated framework, able to measure the returns on their advertising investments by
this article expounds all the factors that would significantly deter- assessing the differential impact of their advertising strategy,
mine a futuristic advertising strategy. The proposed framework message, content, channel, and targeting due to the influence
elucidates the following factors related to customers, firms, tech- of the macro factors and the contextual (moderating) factors
nology, and information: what customers demand, where the on various performance indicators.
firm’s focus should be, which kind of disruptive technology is
required to optimally reach out to the target market, and how infor-
mation should flow in the world of business to make an everlasting Customer Demands
impact. Personalized communication. Customers’ expectations
for relevant messaging are evolving; they seek customized
communication designed to fulfill their specific needs. The
WHAT LIES AHEAD FOR ADVERTISING? advances in digital technology have made “mass custom-
Advertising has always kept up not only with changing ization” of products and communication a reality. Personalized
times, trends, and mind-sets but also with changing technology. communication also helps firms accelerate a consumer’s deci-
The nature of advertising too has evolved over the years. sion-making process and increases the likelihood of response
Advertising started off from essentially a one-way broadcast of and purchase/subscription (Ansari and Mela 2003). For exam-
a sales pitch, to taking an interactive form, to eventually taking ple, beauty retailer Sephora encourages customers to build
the form of two-way conversation. Marketers moved from a their profiles online and update them with their preferences.
product focus to a sales focus, to eventually a relationship Sephora then sends personalized e-mails that feature a selec-
focus. The focus shifted to developing and disseminating com- tion of products particularly customized to complement the
munication that inspired consumers to not merely buy but form recipient’s distinctive beauty profile and preferences (Yadav
a lasting relationship with the brand. The future of advertising, and Pavlou 2014). Needless to say, consumers find such per-
however, lies in taking advertising beyond even the relationship sonalized communication worth their scarce resources—in
focus to the engagement focus. Therefore, a worthwhile area for other words, their time and effort. It is safe to assume that pre-
research is developing an integrated framework that organizes senting perfectly matched products to consumers has a note-
the macro and contextual factors that are likely to influence the worthy impact on Sephora’s profits and customer retention
effectiveness and performance of advertising. rates, helping them win some brand love and effectively gain
consumer trust. With detailed data on customers becoming
increasingly available, the future of advertising is expected to
INTEGRATED FRAMEWORK FOR THE FUTURE see more such personalized communication across industries
OF ADVERTISING and markets.
In this article, we first present an integrated framework to
organize the discussion of the current state of advertising (see Generalization (G)1: Personalized communication will play a
Figure 1), and offer some generalizations with respect to the more pivotal role in advertising.
future of advertising. Following Figure 1, we discuss the
macro factors that would affect the advertising strategy of a Relevant messaging. Today, across most product catego-
firm in the future. This section discusses the four macro factors ries, a plethora of brands is vying for consumers’ and pros-
related to customers, firms, technology, and information—in pects’ attention. In addition, these brands tend to jump at any
other words, what customers seek from advertising communi- given opportunity to broadcast their message to consumers, in
cation, what the firm’s focus should be while designing its hopes that the consumer will not only notice them but also pro-
future communication strategies, how technology affects the ceed to purchase whatever it is the brand is selling via that
communication space, and how information is disseminated message. Unfortunately for most brands, that is not how con-
via various modes of communication. We suggest that all four sumers conduct their purchases. The fact that consumers are
macro factors would mutually affect the firm’s advertising usually media multitasking and switching between devices
strategy encompassing of advertising content, advertising mes- and platforms poses an additional threat to the effectiveness of
sage, advertising channels, and advertising targeting. advertising messages. However, as a study by Angell et al.
304 V. KUMAR AND S. GUPTA
Macro Factors
Customer Demands for:
• Personalized Communicaon
• Relevant Messaging
• Contextual Trust
Contextual Moderang Factors
What firms have to focus on:
• Profitable Customer Engagement Customer Life Cycle Compeve Intensity
• Data-driven Adversing
• Real-me Adversing Adversing Strategy
• Permission Markeng Locaon (Developed
• Co-creaon vs. Emerging) Adversing Content
• Earning Trust Adversing Media Selecon
• Experienal Adversing Adversing Message
• Capturing Customer Feedback Adversing Targeng
Technological Environment:
Product Life Cycle: Product
• Media Convergence
• Social Media New Purchase/ Category
• Futurisc Technology Repeat Purchase
• Data Analycs Consumer’s Willingness
Mobile Disrupon to Go Digital
Informaon Disseminaon:
• Word of Mouth
• Social Influence
• Bloggers Return on Adversing
• Expert Opinions
FIG. 1. Integrated framework of the future of advertising.
(2016) establishes, as long as the advertising message is rele- This kind of trust is more cognitive and perceptual in nature; the
vant to either the content that is being viewed by the consumer positive image of an endorser can form a positive attitude toward
or his or her consumption goals, the effectiveness of an adver- the ad and, in turn, the brand. The credibility literature confirms
tisement is not adversely impacted by multimedia usage. A the notion that “celebrities owe some of their effectiveness as mar-
study by Baker and Lutz (2000) also emphasizes that advertis- keting devices to their credibility” (McCracken 1989, p. 311). It
ing is likely to be effective when the type of information pre- has been suggested that their trustworthiness and source expertise
sented in the advertising message matches up with the significantly affect attitude change and product evaluations
information that consumers are looking for at the time and are (McGuire 1985). Moreover, the endorser’s credibility affects the
inclined to process and mentally register. The widespread attitude toward the ad, product perception, and image (Atkin and
availability of technology to broadcast messages on demand, Block 1983). The likability of the endorser creates a persuasive
online and offline, has an adverse effect where firms face the impact on the minds of the consumers (Tripp, Jensen, and Carlson
risk of coming across as intrusive to their audiences. However, 1994). This likability can be subject to the attractiveness/appeal of
by increasing the relevance of their advertising messages, the endorser due to his or her behavior and physical appearance
firms can ensure that their advertisements are not perceived as (McGuire 1985); and the celebrities who are liked are perceived to
intrusive by their audiences (Edwards, Li, and Lee 2002). be trusted product endorsers (Friedman and Friedman 1979).
Endorsements are a form of advertising that use famed person-
G2: Advertising messaging will be increasingly targeted and alities who command a high degree of recognition, reliance, and
contextually relevant. respect among the people. Celebrity endorsement can be defined
as “any individual who enjoys public recognition and who uses
Contextual trust. Trust, according to Rousseau et al. (1998), this recognition on behalf of a consumer good by appearing with it
is defined as “a psychological state comprising the intention to in an advertisement” (McCracken 1989, p. 310). In comparison
accept vulnerability based upon positive expectations of the inten- with other endorsement types, celebrity endorsements are more
tions or behavior of another” (p. 395). This definition describes effective, as they convey a sense of trustworthiness, believability,
trust as a state of mind, which persuades a person to accept the risk persuasiveness, and likability through advertising to the viewers
of something due to positive expectations or intentions drawn (Freiden 1984; Till and Shimp 1998). For instance, using an inter-
from the shown behavior. Contextual trust could be generated via nationally known sports celebrity like Roger Federer to endorse
celebrity endorsements, reviews from experts, opinion leaders, Tag Heuer watches can help emphasize the aspirational nature of
and customer testimonials, among others. the watches, influence people that consider him a role model
In the context of advertising, we define contextual trust as con- across the world to develop a favorable impression of the brand,
sumers’ placing their trust in advertisements influenced by the and eventually buy their products. A recent study by Jin and Phua
credibility of the context, such as celebrities endorsing the product. (2014) on the effectiveness on celebrity endorsements on
microblogging and social media sites like Twitter found that smart data management techniques and spending a big chunk
celebrity endorsements work extremely well on Twitter owed to of their resources on data-driven marketing and advertising.
the combined leverage of positive electronic word of mouth, social Customer databases are consistently getting richer, more
network influence, and celebrity power. Customers focus more on deeply layered, and multidimensional. These big data can
the benefits rather than the source unless they are experts in that make all forms of advertising much more efficient, especially
category. For instance, Nike reaped the benefits of hiring Tiger online display advertising. As a result, firms are now begin-
Woods as their brand endorser, saw an additional profit of ning to focus on collecting data, accessing data, analyzing
$103 million, and recovered more than half of their monetary data, and generating and acting on insights on an ongoing
investment in his endorsement via sales of golf balls in the United basis. However, while more firms are collecting and access-
States alone. Nike also witnessed the dark side of celebrity ing data, few firms have actually built the capabilities to
endorsements and the risk associated with hiring an endorser who analyze these data and develop usable and relevant insights.
is also a category expert: After the personal scandals associated The premise of data-driven advertising and marketing are
with Tiger Woods became common knowledge, Nike incurred a based on two rationales: the desire to know and interact more
loss of more than $1 million. However, the extent of financial relevantly with customers; and to maximize return on invest-
damage in this case was limited, as the celebrity endorser’s per- ments. Looking ahead, it is expected that, to attain the largest
sonal character was called into question but not his professional gains, firm spending on capturing relevant customer data and
abilities or credibility (Chung, Derdenger, and Srinivasan 2013). data analytics will take over the major chunk of the marketing
budget, eventually surpassing the budgets for traditional
G3: Credibility of the advertisement context will continue to inspire advertising.
customer trust/brand trustworthiness, but less so than in the past.
G5: Data-driven advertising and measurable, targeted, and data-

based advertising campaigns will increasingly become the pre-
Firm’s Focus ferred form of advertising.
Profitable customer engagement. In recent times, compa-
nies have begun to realize the importance of having not just a large Real-time advertising. Firms respond in real or near-real
customer base but a profitable customer base. As a result, the focus time to their customers. Real-time advertising is about focus-
has shifted from a sales-centric philosophy to an engagement-cen- ing on up-to-date events and creating a strategy based on ongo-
tric one that helps companies establish and maintain lasting rela- ing trends and immediate consumer feedback. The main
tionships with the customers who help them turn a profit (Kumar objective of real-time advertising is to connect with the con-
2013, p. 2). While taking an engagement-oriented perspective of sumers in real time and address their needs immediately. This
value, it is important to go beyond mere purchase behavior and goal can be achieved by listening to and anticipating consum-
take into account the numerous other ways that a consumer ers’ needs and responding by sending relevant messaging.
engages with a firm. As such, the concept of customer engagement Advances in social media and technology environments have
value (CEV) is more relevant and comprehensive, as it takes into enabled real-time optimization of display advertising, making
account (a) customer lifetime value (CLV): customers’ first-time, it more effective than ever. With Facebook, Instagram,
repeat, cross-category purchases; (b) customer referral value Twitter, and other popular social networking sites and applica-
(CRV): customer referral behavior and the value it brings to the tions, firms can gather almost all relevant information about
firm; (c) customer influence value (CIV): the extent of customers’ their users and can use these data to design and deliver
influence of other customers and prospects; and (d) customer relevant messages to consumers in a time of need. As a result,
knowledge value (CKV): the value that customers bring to firms consumers are more likely to buy products or services because
by providing feedback or facilitating idea generation and product they will recognize the immediate utility that they can receive
development (Kumar et al. 2010). Effective advertising can from them and with the better offer conversion; it provides a
enhance not only customer engagement and profitability (Hogan, win-win situation for marketers and consumers.
Lemon, and Libai 2004) but also overall CEV. For example,
advertisers would emphasize the benefits of incentivized referrals, G6: Real-time, relevant advertising is an integral (dominant) com-
illustrate the power of influencers, and focus on the prestige asso- ponent in the firm’s integrated marketing communication strategy.
ciated with cocreation of products and services.
Permission marketing/advertising. Permission marketing
G4: Advertising focus will increasingly be directed toward building is an approach where marketers seek customers’ permission
profitable customer engagement. before sending them marketing messages. Though the idea of
permission marketing was proposed in 1999 by Seth Godin, it
Data-driven advertising. The growing consumer demand has emerged as an effective solution to the challenges market-
for personalization has rendered information the status of ers face in today’s digital age. Permission marketing facilitates
being the most valuable currency. Firms are quickly adopting two-way interaction and engagement in the process of
marketing, where customers proactively interact with firms consumers and to provide them an experience that goes
and participate by joining their marketing campaign voluntar- beyond products and services. In the process of cocreation,
ily. Given its interactive nature, permission marketing is confirms tend to be more transparent, authentic, and creative to
sidered crucial for firms’ value creation. It is based on the bring in new ways of engaging consumers and turning them
premise that customers are not reluctant to receive marketing into brand ambassadors.
materials if firms first ask for their consent (Kumar, Zhang,
and Luo 2014). Permission marketing can be exercised by
G8: Cocreation will play a critical role in making advertising com-
carefully maneuvering a firm’s new media channels (social
munication more interactive and in creating two-way conversations.
media, mobile, Web, e-mail). The main goal of permission
marketing is to have authentic interactions with customers
Earning trust. Trust is a fundamental element for human
without intruding on their privacy.
relations as well as for consumer and seller relationships
In addition to respecting consumers’ right to privacy, one of
(Luhmann 2000; Gambetta 1988; Moorman, Deshpande, and
the key focal points of permission marketing is to get their atten-
Zaltman 1993). However, there is a consistent tendency among
tion. Attention is an important asset; when customers choose to
consumers to distrust advertising. Previous research has recog-
pay attention, they actually are paying you with something pre-
nized trust as an antecedent of persuasion and reported its
cious. It is something to be valued, not wasted; it is an invest-
correlation with liking, information acceptance, and other
ment. But what is one person’s permission worth? AOL pays as
processing effects (Petty and Cacioppo 1996; Hovland, Janis,
much as $300 to get one new customer; American Express shells
and Kelley 1953; Menon et al. 2004). Research on trust in the
out approximately $150 to get a new cardholder. Wall Street
context of various advertising media has found that, in spite of
spends $15 in media acquisition costs just for permission to call
their inherent skepticism and ambivalence toward advertising
a potential customer on the phone (Godin 1999). But do these
messages, customers in general tend to like commercials more
firms earn enough to justify this expense? Probably not. How-
than they dislike them. They find commercials to be pleasing,
ever, the benefits attached to permission marketing outweigh the
informative, and valuable in their search process (Soh, Reid,
high investment cost for getting a new customer to the firm. It
and King 2007). In an overcrowded, saturated market, under-
allows firms to cross-sell products, track consumer behavior, and
standing how consumers feel about a given advertisement and
tailor offers designed to address the specific needs of existing
how they would react to it is a complex phenomenon.
and prospective customers. The monetary gains from opting in
Consequently, it is challenging for marketers to develop an
to a marketing/ad campaign is six to 10 times the investment
effective media allocation strategy. Therefore, it would be a
(Kumar, Zhang, and Luo 2014).
wise move for marketers to understand the trust dynamics of
various media and optimize their advertising spends accord-
G7: Permission marketing will become the default approach for the ingly. A lot of variation can be seen in consumer trust across
customer contact strategy of firms.
advertising media.
Cocreation. Cocreation, crowdsourcing and user-gener-
ated content are considered imperative in today’s media com- G9: Earning and keeping consumers’ trust will continue to be both
munication and advertising space. However, contrary to a key challenge and major opportunity for advertisers.
popular belief, cocreation, particularly in advertising, is not a
new concept, having existed for years in the form of quizzes Experiential advertising. Experiential advertising is a
and contents; but it has become ubiquitous in recent years. It form of advertising that focuses primarily on facilitating con-
provides a channel for more participative, dynamic, and inter- sumers to experience a brand. In experiential advertising, firms
active relationships between organizations and their stakehold- directly engage consumers and encourage them to participate
ers. When a firm decides to invite customer participation, it in helping evolve and build the brand. It allows the consumers
provides a platform to hold an interactive conversation, and to live the brand via engagement and cocreation, and as a
hence ensures more active participation. However, it is not result they are able to develop a relationship with the brand.
always essential that participants are aware of their participa- Experiential advertising differs from traditional advertising.
tion in the process. When firms track customer behavior online While traditional advertising is more focused toward the ver-
or investigate their buying and browsing profiles, the customer bal and visual communication of product and service benefits,
has little or no information on the nature of information that is experiential advertising tries to immerse the consumers within
being collected and studied. This fact is also one of the most the product. In the competitive marketplace, experiential
controversial aspects of the “cocreation” phenomenon and advertising allows firms to stand out from the clutter, as con-
continues to spark debates on privacy concerns, need for regu- sumers who have shared moments/memories with that brand
lation, and so on. However, the implications of cocreation are would like to relive those memorable experiences, thereby
much more relevant and pervasive; firms are altering their influencing their purchase decisions. A study by Singh et al.
communication strategies to be more interactive with their (2000), found that direct experience with a brand is more
effective in generating recall and positive intent than tradi- convergence is an ongoing process and should not be seen as a dis-
tional advertisements. placement of old media; rather, it is interaction, collaboration, and
cooperation between previously unconnected media forms and
G10: Advertising is evolving into an immersive, experiential plat- platforms (Jenkins 2006; Erdal 2011).
form that encourages participation from consumers. Convergence by its very nature facilitates a synergy among var-
ious media channels. Television programming that is delivered
Capturing customer feedback. In interactive advertising, digitally via cable, telephone, or satellite hookups is a great exam-
consumer feedback can be used as a strategic tool through ple of convergence. In addition, media convergence has paved the
which consumers give suggestions on how the firm should run way for a plethora of opportunities for marketers to hone in on and
its business. An advertisement is found to be effective if the target customers at a level of precision and customization that was
consumer has understood a message that is similar to what formerly not available via traditional forms of advertising. For
marketers intended to communicate. Feedback from the con- instance, thanks to media convergence and the advances in tech-
sumers can help marketers adjust the message if it is not well nology, a specific household can now be targeted with a unique set
comprehended by the consumers. Receiving instant feedback of commercials during a TV program, while a different set of com-
from consumers is imperative; that the feedback process mercials may be available to another household watching the same
should be interactive in nature, because noninteractive pro- program. The most striking feature of the convergence phenome-
cesses will decrease the speed and effectiveness of the adver- non is that it is not restricted to just a few media types but rather is
tisement, which would be a detrimental result (Pavlou and all-encompassing.
Stewart 2000). Building friendly relationships should lead to To reap the maximum benefits from various media chan-
customer engagement. While relationships are based on trust nels, it is essential that firms adopt a data-driven, optimal bud-
and commitment, engagement goes a step further and ensures get allocation strategy to identify the most effective media
that a customer is also satisfied and emotionally connected channels, and reallocate media investments in line with the
with the firm (Pansari and Kumar 2016). An engaged customer overall marketing objectives of the firm. This approach of con-
is expected to provide feedback. Customers with positive verging and optimizing media was implemented at the world’s
experiences with the firm and its brands are more likely to pro- second-largest aquarium, Georgia Aquarium, leading to a 10%
vide genuine feedback to the firm. The better the relationship increase in attendance, 12% increase in revenues, and setting
between the firm and its customers, the more the firm can rely it on a sustainable growth trajectory (Kumar et al. 2015).
upon them to give powerful testimonials and positive reviews. Examples of media convergence can be seen across industries.
Customer feedback helps firms gain a better understanding of For instance, the ability for customers to have a monthly digi-
how the brand is performing and how it is being perceived. At tal subscription to the New York Times is a result of media con-
the same time, people find themselves in a fix when they are vergence. The future holds even more convergence
asked to provide their candid feelings about their experiences opportunities, especially in the domain of advertising. Media
in written testimonials because it is not “off the record”. How- convergence has impacted advertising as well. For instance,
ever, asking them to provide feedback ensures the end product the ability of a supermarket to broadcast a relevant deal to a
will be more organic and natural-sounding. Therefore, it is rec- customer’s mobile phone while passing/driving by the store is
ommended that companies take even the minimal feedback the result of media convergence. Media convergence in adver-
from customers in a positive way and implement those tising can be seen as an opportunity for optimum coverage, to
concerns. deliver the right message at the right place and ensure its rele-
vance to the receiver, in other words, an ability to target the
G11: Advertising will more actively engage customers to solicit right consumers with minimal waste.
customer feedback, and will also showcase examples of implemen-
tation of the feedback as a strategic choice.
G12: Media convergence is an inevitable result of the widespread
adoption of integrated marketing strategies and the advances in
technology.
Technological Influence
Media convergence. Convergence can be explained as a Social media. “Social media are fundamentally changing
blend of media, telecommunications, and computer industries. In the way we communicate, collaborate, consume, and create”
the process of convergence, the boundaries between media plat- (Aral, Dellarocas, and Godes 2013, p. 3). The social media plat-
forms become blurred and unite them into one digital form. form enables individuals to engage in multifaceted communica-
The development of the World Wide Web, digitization of media tion ranging from one-to-one, one-to-many, and many-to-many
content, and high-speed computer networking have radically levels. As noted by Barnes, Lescault, and Andonian (2012),
enabled the convergence phenomenon, especially media conver-
gence. Therefore, convergence can be examined in terms of social The use of social media among Fortune 500 companies surged in
as well as technological changes within society. Media 2012. According to a study conducted by the University of
Massachusetts Dartmouth, as many as 73 percent of these compa- accurately reflects macrotrends for segments, as opposed to
nies now have an official corporate account in Twitter, while 66 individual, idiosyncratic information that cannot necessarily
percent have a corporate Facebook page. In addition, as of 2011, 28 be generalized. (2) From the customer’s perspective, given its
percent of the companies had blogs at the corporate level, repre-
senting the largest increase since 2008. inherently “meta” or “macro” nature, data and behavioral pri-
vacy concerns are automatically voided. In fact, it is expected
Social media have been defined as a series of technological that if customers are engaged with a firm, those customers will
innovations in terms of both hardware and software that facili- be more willing to share their private information, which can
tate inexpensive content creation, interaction, and interopera- then be used for effective advertising (Pansari and Kumar
bility by online users (Berthon et al. 2012). A participant in 2016).
social media is not only a consumer but also a producer. Social
media has dramatically changed the advertising space and G15: Crystallized metadata will help marketers achieve the thus far
elusive balance between respecting consumers’ privacy and track-
presents many challenges to firms as well as advertising agen- ing their consumption footprint.
cies. The rise of blogs in the 2000s as well as the emergence of
social networking sites brought about a revolution in the way
the Internet was used. It decentralized the Web and ushered in Information Dissemination
an era of participation and self-expression. This new wave has Word of mouth. Accordingly, marketers are realizing that
also permanently shifted the power dynamics on the Web and spending millions of dollars on elaborate advertising cam-
gives consumers a way to control, process, and act upon/reject paigns probably would not pull consumers’ attention and per-
communication that was broadcast to them. suade them to purchase. Word of mouth and consumers’
Given the increasing popularity of social media, it is imper- reviews have been recognized as a powerful marketing tool
ative for firms to leverage this channel effectively as an adver- that cuts through the noise quickly and effectively and incul-
tising vehicle. Social media is an excellent vehicle to activate cates trust among consumers (e.g., DeCarlo et al. 2007). The
social influencers and offer relevant and hypertargeted content effective influencers in an online social network may signifi-
to customers to ensure optimally effective advertising (Kumar cantly affect customers’ purchasing decisions via trust in elec-
et al. 2013). tronic word-of-mouth (eWOM) marketing (Liu et al. 2015).
Brands can outgrow their competition by actively driving posi-
G13: Social media will assume a permanent place in the marketing tive conversations among their consumers. However, it is vital
and media plans of firms, as social media platforms continue to that reviews on e-commerce sites and social media communi-
hold appeal across various demographics. ties should be not only positive but also authentic and accurate.
In the case of Google’s viral Gmail campaign in 2004, the
Futuristic technology. Although it tends to seem like pure company used word of mouth in real life. They spread infor-
science fiction, it is not far-fetched to say that technology mation about their new e-mail service through Internet-based
could enable telepathic communication in future. Such tech- networks and extended their campaign by allowing their cur-
nologies will have a large and disruptive influence on society; rent users to distribute new invitations themselves to their own
there would be disruptions to established norms and broad social networks until Gmail became available publicly (Scoble
societal challenges. Business leaders, policymakers, and indi- and Israel 2006). Today, more than 450 million people use
viduals in the United States and around the world will confront Gmail worldwide. Thus, in the era of digitization, word of
change on many fronts. The emergence of such disruptive mouth is no longer an act of intimate, one-on-one communica-
technology allows customers to live the moment via products tion. It also operates on a one-to-many basis, with product
and engage with them experientially. Cloud computing, next- reviews and opinions posted online and disseminated through
generation genomics, and advanced robotics are a few disrup- social networks. More conversation about brands takes place
tive technology examples, which are set to change the face of in offline than online environments, and more positive out-
advertising in the future. comes are discussed than negative (Baker, Donthu, and Kumar
2016). However, in the future, online communication will
G14: Technology that tracks behaviors and attitudes of consumers grow to become decisive and a significant force in influencing
and provides a platform for two-way engagement between firms and retransmission of positive interactions.
and consumers is increasingly being adopted by marketers.
G16: Electronic word-of-mouth communication will become the

Data analytics. The world of customer analytics is most relied-upon source of information in the future, assuming the
increasingly making a shift from individual/personal data to communication is positive and that the spread of information is
metadata. Needless to say, the ability to collect, interpret, and among family and friends and not strangers.
act on such metadata will be a key strategic competency for
firms and advertisers in future. Metadata offers two inherent Social influence. People are influenced by societal norms,
advantages: (1) From the marketer/advertiser’s perspective, it and their buying decisions are influenced by their social
circles. For ages, social influence has played a critical role in G18: Blogs and microblogs will increasingly be considered trust-
life decision processes. Societal influence is also gaining worthy sources to disseminate product information by advertisers
prominence in the digital world, where for every purchase as well as by consumers.
decision consumers first look for opinions and read reviews by
fellow customers on the Internet. As a result, marketers are Expert opinions. The expert-opinion technique in adver-
now becoming more and more interested in learning about, tisement can be more influential in explaining the benefits of
organizing, and managing virtual communities in Internet products that are more technical. The technical expert in the
space (Bagozzi and Dholakia 2002; Balasubramanian and field is the subject-matter expert, thereby adding credibility to
Mahajan 2001). The Internet, with its vast scope, not only pro- the brand. This also helps alleviate fears that consumers might
vides a rapid dissemination of knowledge and perceptions for have about trying something unfamiliar. An expert can be
the new product in the market but also offers various avenues defined as a source of valid assertions (Hovland, Janis, and
to build strong customer relationships through active customer Kelley 1953), one who identifies the correct stand on an issue
engagement (Dholakia, Bagozzi, and Pearo 2004). Online (McGuire 1969), or one whose statements have been con-
social networks are becoming more widely recognized as an firmed empirically (Birnbaum and Stegner 1979). Expert
essential source of information that can directly influence the endorsements are considered to be more effective because
adoption and use of products and services (Subramani and communications endorsed by an expert produce greater con-
Rajagopalan 2003). Firms are relying on the standard practice formity with the subject than the same communications
of merging customer characteristics and past behavior interac- accredited to a nonexpert (Tedeschi 1972). Because the pur-
tions between the firm and customers to compute the customer pose of most advertisements is to convey certain meanings
score used for targeted retention efforts. However, firms can and/or views associated with the company and the brand to
now consider and calculate the impact of customers’ social persuade trial or repeat purchase, featuring an expert endorser
influence in assessing their potential value and identifying the in advertisements likely makes viewers and buyers more
most valuable customers and most viable strategies for agreeable to the conveyed message (Biswas, Biswas, and Das
targeting and communicating (Kumar et al. 2013). Big data 2006). For instance, an advertisement showing a doctor wear-
analytics can provide a solution to this problem by actively ing a white laboratory coat explaining the benefits of using a
leveraging the power of social influence. certain brand of toothpaste can create a positive impact on
the audience because of his or her perceived expertise and
implied authority on the matter. Sometimes, celebrity
endorsers, who are best in their fields, are also considered
experts in their own fields; however, this connection is not
G17: Marketers will increasingly look to customers’ social influ- always required.
ence as a metric of choice to develop targeting and advertising
strategies.
G19: Consumers will increasingly seek advertising as a platform to
hear expert opinions and obtain technical advice.
Bloggers. Consumers today increasingly explore blogs
to seek information, advice, and reviews on products and
services. They find blogs to be genuine and trustworthy
sources of information that assist them in making sound Contextual Factors as the Moderators of the Relationship
purchase decisions. Noting the power of blogs, firms nowa- Between Macro Factors and Future Advertising Strategy
days are opting for microblogging platforms to quickly Product life cycle. The theory of a product life cycle was
communicate with their customers. This helps firms ensure first introduced in the 1950s. The main purpose of this theory
that every time they announce a piece of information on was to elucidate the expected life cycle of a product from its
Twitter or another microblogging social platform, millions inception to obsolescence. Though life cycles of products are
of people will be notified immediately via the Internet. The very diverse, typically the life cycle of a product can be classified
speed, reach, and perceived credibility of such messages is into five stages: introduction, growth, maturity, saturation, and
incredibly high. Moreover, because blogging presents a decline. Based on the life-cycle stage of its product, a firm
platform for two-way interaction and develops a sense of decides on its advertising strategy—whether the ads are intended
familiarity and affinity, it is more effective than online to inform, persuade, or remind. At the introduction or market
advertising. Through their interaction with “friends” and entry phase, the product is new in the market and starts with its
“followers,” firms are using microblogging for social media distribution and first sales. At this stage, the product is still a nov-
marketing, which is helping them in two ways: First, they elty and the technology has not yet been mastered. At such a
can build a social network of users or potential buyers and stage, it is beneficial for firms to invest in informative advertising
can influence their purchase decision. Second, they can to build initial demand for its product by attracting the interest of
monitor public opinions, feedback, and reactions (Hsu and potential buyers who seek information about the advantages of
Tsou 2011). the new product over existing alternatives. Here, prices are
usually high and sales volume is small. Competition in this phase Customer life cycle. Loyal customers are some of the most
can make only substitutable products. The main objective of all valuable assets of the firm; however, they don’t just appear over-
marketing activities, including advertising, is to create a market night. There are a number of stages, known as customer life-cycle
for a new product. Therefore, at this stage, if the firm is able to stages, that firms have to go through to secure and satisfy those
build a personalized relationship with its prospects via relevant loyal customers. The customer life-cycle concept in marketing
messaging and active engagement, its potential consumers can emphasizes maximizing the value of customers at each stage in
be persuaded to buy the product in future. In this phase, there is a their journey with the firm’s product and services. If firms are able
very high degree of uncertainty. Consumers seek assurance to define their customers’ journey and tailor their marketing efforts
about the value and performance of the new product and are accordingly, they will succeed in developing the most effective
keen to reduce perceived risk when buying the product. There- marketing strategies. Here, we define the customer life-cycle
fore, if a firm is able to incorporate trust through the medium, stages on the basis of their interaction and usage pattern: aware-
content, or messaging of its advertising, it can substantially ness, consideration, purchase, retention, and advocacy. Although
enhance its return on advertising investment. consistent marketing efforts are required to attract customers at
Firms should adopt new ways of advertising with the help every stage, ad content, selected media channel, and advertising
of disruptive technology to disseminate the information message effectiveness vary across the life-cycle stages of the
through appropriate channels. At the growth stage, buyers customer.
have accepted the product and the product is rapidly going up Creating awareness among prospects is a crucial goal for
on the demand curve. However, the competition is growing, marketers; however, the real challenge lies in accurately tar-
with other firms now offering their own similar products. geting potential customers who are indeed interested, willing,
Therefore, this stage of the product life cycle demands creation and able to make a purchase. Marketers are embracing social
of a positive environment around the product. Firms should be media platforms and the ever-burgeoning platforms of user-
focused on generating positive word of mouth and involving generated content to better comprehend the current interests of
consumers to modify products per their needs. Cocreation is buyers and to be able to speak to these interests and build
the way through which firms can allow the engagement as awareness by developing and disseminating messages they
well as new ideas to modify its product and make it better than can trust. It is now clear that firms should make an effort to go
its competitors. Astute utilization of social media can leverage beyond the standard measures of conversion. Therefore,
the advertising activities of the firm. instead of asking “How many customers/prospects have come
The maturity stage of a product life cycle is characterized through various digital channels?” firms should ask “Who are
by the fact that most of the buyers have already purchased the the ones that have come through different digital channels and
product, and thus it is expected that sales in the future will fall. why?” It would be worthwhile for firms to consider, for
At this stage, new product alternatives of better quality and instance, instead of looking at conversions per keyword, con-
value propositions are entering the market. At such a point, sumer profile by keyword. Understanding these key pieces of
firms need to keep abreast of the needs and latent wants of information would help optimize advertising strategy and
their existing as well as potential consumers. Data analytics thereby return on advertising.
can help firms dig deeper into consumers’ profiles and pull out Once the initial connection between the customer and the
the relevant information required to rejuvenate their mature brand is made, which could be either by visiting the site,
products. Moreover, with the help of social influence, loyal through a social network, or by making the first purchase, the
consumers can serve as advocates of the product to potential next goal is to induce repeat purchase behavior. Firms should
consumers. Further, futuristic marketing technologies that bear in mind that repeat purchase, retention, and advocacy are
facilitate experiential marketing, as well as feedback captur- shaped by customer satisfaction and experiences drawn from
ing, can help firms design suitable advertising strategies for the brand. It also depends on the way the firm nurtures the
their mature-stage product. brand through its communication channels. This is the stage
The saturation and decline phase demand that firms con- where firms should try to build their brand communities by
stantly engage with consumers and work on maintaining con- creating a knowledge base of their brands among their
sumers’ trust in the product. It is important to bear in mind that consumers.
the product life cycle is also influenced by external factors such As customers navigate through their life cycle with the firm,
as the economy in general, consumer lifestyles, inflation, and so those customers transact with the firm, then build relationships
on. However, with the spread of positive word of mouth through with the firm, and finally engage with the firm. Engagement
the use of experts and social blogs, firms can make efforts to reju- leads to advocacy. Advocacy is the ultimate stage of the cus-
venate the product and probably extend its life cycle to the fullest tomer life cycle that every firm desires to accomplish and pre-
before it enters saturation and finally the decline stage. serve. At this stage of the customer life cycle, firms should try
to maintain a conversation with its customers to maintain the
G20: Firms are increasingly focusing on customizing their advertis- relationship. Firms should motivate their loyal consumers to
ing strategies based on the life-cycle stage of the product. stay actively engaged in building their brands by being active
on social media and keeping blogs updated. As a marketer, Mobile disruption. The prevalence and easy accessibility
offering relevant and unique content is one of the best ways to of Wi-Fi-connected handheld devices have ensured that we
stay top of mind, and to make it happen content resonance are fast approaching the era where most content will be con-
must be tracked continuously. Customer life-cycle analytics sumed on mobile devices. The barriers between mobile, TV,
can be a helpful tool to achieve the same. Such a tool integra- and the Internet are also quickly disappearing. In many parts
tes data from a number of customer touchpoints: of the world desktop/laptop computers are a rarer commodity
than mobile phones. In such markets, technology is cheap, and
1. Interaction data—for example, how customers interact with smartphones are within reach of the majority. As such, people
an online store to understand the overall journey of its cus- in these markets are likely to have their first brush with the
tomers on its website, from product browsing to adding Internet via their smartphones rather than a desktop/laptop
products to their carts to final purchase; computer. Trends and consumption patterns like these con-
2. Transactional data—information about every transaction tinue to disrupt the way that people consume content and the
completed by each customer; way that firms reach out to customers. Consumers’ purchase
3. Demographic data—information about their age, location, consideration process has effectively changed for the good,
gender, and so on. where consumers want to proactively conduct their own infor-
mation search, narrow down their choices, hear what other
More than ever before, firms that can identify and act on a people have to say about their choices, and finally commit to a
customer’s life-cycle stage for their products (Kumar, Lemon, purchase. Control and on-demand access are the key character-
and Parasuraman 2006), now possess a powerful competitive istics of this new process—and the one device that provides
advantage that cannot be easily replicated by their competitors. consumers with both of these coveted characteristics is the
mobile phone. Advertisers and marketers everywhere urgently
G21: Firms will increasingly focus on customizing their advertising need to grab the opportunity for mobile with both hands to
strategies based on the life-cycle stages of customers to better serve best harness its scale and relevancy benefits.
their needs. The media agencies that marketers rely on to buy ad space
also pose a severe hindrance to mobile progress. However,
Location (developed versus emerging). 29 (4), 59–75.A programmatic and real-time buying are proving to be huge dis-
key question for global firms is whether they should approach ruptors to the traditional media agency business model. Pro-
advertising differently in emerging as compared to developed grammatic advertising delivers dynamic content to users based
markets. A recent study by marketing scholars focused on on their location, time of day, and so on, with guaranteed
identifying the differences in advertising strategy depending impressions on certain sites. Top-down pressure is needed
on the developed versus emerging nature of the market (Zaran- from chief marketing officers and other members of the
tonello, Jedidi, and Schmitt 2013). This study used data from senior/executive-level marketing team to enforce a renewed
tests on 256 television commercials by a multinational con- focus on the mobile medium if they want their brands to avoid
sumer goods company across 23 countries. It focused on two falling behind. Mobile is here to stay, and it will continue to
benefits-driven messaging strategies: (1) the functional benefit grow in marketing importance, literally by the minute.
approach, where the actual features and benefits of a product
were highlighted, and (2) the experiential benefit approach,
G23: Fueled by programmatic buying and other dynamic delivery
which focused on communicating intangible sensations, feel- technologies, mobile Internet will soon become the most important
ings, and imaginations. The research team found that the driv- channel for firms and irreversibly change the way that firms and
ers of action/response differed between the two markets. In consumers interact, transact, and engage with each other.
emerging markets, functional communication was more effec-
tive; while in developing markets, experiential communication Product category. Product categories have always played
was more effective. Advertisements that were local/global and an influential role in deciding the content, timing, positioning,
traditional/modern in positioning, tone, and execution also had and appeal of advertising messages. Products can be either
differing impacts in developed versus emerging markets. business products or consumer products. Business products
However, interestingly enough, individualistic versus collec- are the products that are created for and used by organizations
tivistic appeals did not seem to affect the persuasion process. in their routine operations, and these items are usually selected
Overall, the study shows that the location of the market (devel- and purchased by the representatives of organizations based
oped versus emerging) more likely than not plays an important on comparison shopping or via soliciting competitive bids.
role in the effectiveness of advertising campaigns. Consumer products that are meant for individual/retail con-
sumers are typically classified as convenience, shopping, spe-
G22: The location and nature of the target market for a product will cialty, and unsought products. As the names suggest, the use
increasingly determine the advertising strategy and focus of firms case and discovery process for these products differs across
even more as customers hold on to their cultural norms. each category. Convenience products are bought primarily for
the convenience they offer (e.g., an over-the-counter pain- rivalry between two lead players, a common strategy for firms
killer, such as Advil). Shopping products are bought after a rel- is to engage in comparative advertising where the rival is
atively larger amount of research and price/feature directly or indirectly addressed, acknowledged, and taken
comparisons (e.g., a smartphone). Specialty products are often down.
unique, aspirational, and luxurious in nature and typically call Going back to cola giants Pepsi-Cola and Coca-Cola, these
for a higher emotional and financial involvement from the con- brands have traditionally been rivals in the fairly cluttered
sumer (e.g., a luxury brand watch). Unsought products, on the carbonated soft drink space, with distinct customer loyalty bases.
other hand, are the products that rely on aggressive selling The rivalry between these two giants especially intensified in the
from the manufacturers’/marketers’ end to persuade consum- 1980s and 1990s, leading to the term “cola wars.” Both Pepsi-
ers to buy them. Examples of unsought products include new Cola and Coca-Cola unleashed a slew of tactics directed at each
products and most products that are disruptive or breakthrough other, ranging from celebrity endorsements to blind taste tests to
innovations with no previous usage history that consumers can event sponsorships, all intended to establish one brand’s suprem-
use as reference, as well as products that are typically not acy over the other. The intense rivalry between these two brands
actively sought out by customers in spite of the existence of a has somewhat diluted since the turn of the new century, owing to
latent need, such as insurance. consumers making a more conscious shift toward healthier life-
Each of these four product categories differs in key pur- styles. Another possible cause is a sense of ambivalence among
chase-related factors, including use case, target consumers, consumers about the purported differences between the two
involvement levels, purchase criteria, and value proposition, products, which is a fallout of comparative advertising. As
among others. As a result, marketing strategies for these prod- pointed out by Donthu (1998), comparative advertising could be
ucts vary. Not only does the key message and benefit proposi- a good way for an unknown brand to generate awareness and
tion of the advertising message change according to the recall, but it is not advisable in the long run because “attitude
product category, but also the medium through which the mes- toward comparative ads is likely to affect attitude toward the
sage is delivered and the timing of the message have a huge brand in the same direction” (p. 119).
bearing on the impact of the advertising efforts. An interesting (and unintended) side effect of aggressive
Another school of thought distinguishes between products advertising by a firm can be an overall increase in sales for the
based on the hedonic (abstract, pleasure-oriented) and utilitar- product category as a whole and for rival firms specifically. A
ian (pragmatic, usefulness-oriented) motivations behind their study on the spillover effects of competitors’ advertising found
purchases. In a study analyzing the impact of product catego- that even in highly competitive marketplaces firms can reap
ries on advertising, Geuens, De Pelsmacker, and Faseur (2011) the positive spillover effects of a competitor’s advertising
examine the effectiveness of emotional advertising in the dual efforts. This, of course, depends on the customers’ past experi-
context of (a) hedonic versus utilitarian products and (b) high- ences with the product, how standardized the alternative
versus low-involvement products. They find that, in general, products’ attributes are, and the switching costs involved
while emotional ads work better than nonemotional ads for (Anderson and Simester 2013).
most products, emotional ads do tend to work relatively better In today’s postdigital, always-wired age, there is a whole
for hedonic and low-involvement products, but this is primar- new dimension to competition. Here, attention is the most
ily due to the existence of differences in consumer attitudes valuable currency that firms can strive to earn from their con-
across different product categories. This study underscores the sumers and prospects. The ability for firms to communicate
fact that nature of product categories indeed have an impact with consumers on a real-time, instantaneous basis further
on the effectiveness of advertising efforts and as such should complicates the situation. The challenge that firms now face is
be taken into account while developing the media and adver- not only that a competitor’s message is now just one simple
tising plan for a brand. scroll or click away but also that competitors have the ability
to reach out to consumers and prospects in a potentially more
G24: Firms will increasingly focus on customizing their advertising targeted and effective manner, which again underscores the
strategies based on the nature of the product category. pertinence of focusing on consumers’ needs for more contex-
tually relevant, personalized, and engaging communication.
Competitive intensity. One of the factors that can signifi-
cantly influence the effectiveness of a firm’s advertising efforts G25: Attention will become the new currency for firms and the new
is the intensity of competitive activity that exists in the market. metric for advertising.
Aggressive competitors with big advertising budgets and
widespread, multichannel advertising often overshadow their Consumer’s willingness to go digital. The proliferation of
rivals who fail to match their might and, as a result, fail to gen- digital channels and social media platforms has not only pro-
erate attention, interest, desire, or action. In a highly cluttered vided additional avenues for firms to engage with consumers
marketplace, the one that shouts the loudest often gains the and prospects but has also turned the traditional marketing
most attention. In marketplaces that are characterized by pitch into a two-way conversation.
The level of comfort that consumers feel toward new tech- stay relevant and effective, it is increasingly imperative that
nologies directly impacts the extent to which they are willing advertising messages meet the customers where they are at, as
to switch to digital channels of communication and transac- opposed to drawing them to a place where the firms need them
tion. This level of comfort is often influenced by consumer- to be. The implications for marketing managers remain cru-
level factors, such as perceived privacy concerns, device cial. The future will see gradual shifts in some key impact
restrictions, age, and psychographic attributes; and firm- areas of advertising.
related factors, such as unoptimized platforms and absence of
multidevice touch points.
Needless to say, the level of digitization of consumers has a Glocalization
direct impact on the advertising and media strategy deployed Technology has been bringing customers closer to firms and
to attract, retain, engage, and reacquire them. In addition to to one another, and expansion-friendly trade and economic
the obvious financial benefits from consumers switching from policies are ensuring that products and services are also
print to digital communications from the firm, digital consum- brought closer to customers, geographical boundaries notwith-
ers offer several other benefits to firms. The more channels standing. While distance and accessibility challenges are being
that a consumer uses to interact/transact with a brand, the resolved, firms are increasingly cognizant and respectful of the
deeper is his or her engagement level with the brand. individual cultural identities and orientations of customer seg-
As a result, a focus area for brands is to encourage consum- ments and markets. Digitization, increased choices, and spend-
ers to interact and transact with them across various channels ing power all ensure that consumers are more empowered than
and devices. As part of these efforts, an increasing number of ever before. This reality has shifted the power dynamics in the
marketers now develop multidevice-focused integrated adver- consumers’ favor, underscoring the adage that “the customer
tising campaigns that lead consumers to other channels. is king.” As such, the future will see advertising being increas-
Another benefit that firms can derive from the digitization ingly adapted in alignment with cultural and local norms and
of consumers is the immense amount of data that can be practices, but in keeping with the brand’s overarching global
gleaned about consumers based on the digital footprint trail standards and practices. Glocalization—a blending of local
they leave behind on the various digital channels they access. and global norms—will therefore be the need of the hour.
These data are a potent tool that marketers can leverage not Advertising messages will go beyond mere multilingual adap-
only to understand the purchase behavior and patterns of con- tations and will focus on repositioning brands in a way that is
sumers but also to design more targeted, relevant, and effec- more in tune with the cultural sensitivities and the market con-
tive advertising. Along the same lines, a study by Labrecque text of individual markets.
et al. (2013) shows how digitization empowers not only con- This, in turn, will present new challenges to marketing
sumers but also marketers via data-driven insights. managers in terms of trying to ensure that their global and
local brand identities are aligned with each other to the extent
G26: Firms will increasingly leverage digital platforms to encour- possible and at the very least are not contradictory.
age and facilitate customer engagement and a deeper relationship
across all digital as well as nondigital properties.
Immersiveness
The generalizations proposed in this article envision the Advents in virtual/augmented reality technology will make
future of advertising with a single goal in mind that has eluded it possible for advertising messages to graduate from being
the academics and the marketers, which is measuring the one-way broadcasts to becoming four-dimensional, immersive
return on advertising. With the perspectives offered here, mea- experiences that not only let the consumers “touch” and “feel”
suring the effectiveness and efficiency of advertising for each products but also experience product usage and visualize how
of the media, for each customer, for each product, and for each the product can actually fit in their lives. The multi-billion-dol-
market should be feasible. The returns could be measured in lar gaming and entertainment industries have already been
terms of various performance measures that include sales, making significant investments in virtual reality devices and
profit, awareness, click-through, conversion, word of mouth software to optimize their user/audience experience. It will
generated, and so on. It appears that the future of advertising is only be a matter of time before virtual reality technology will
only getting brighter and better. be the new area of focus for advertisers and marketers as well.
As a scenario reminiscent of futuristic sci-fi movies, future
advertising will present the consumer with the ability to virtu-
ADVERTISING IMPLICATIONS FOR PRACTICE ally interact with the product and “test” it. In the case of com-
The future of advertising lies in going beyond engagement plicated products that require hand-holding and product
and ensuring that advertising messages serve more as helpful demonstrations, virtual assistants can help consumers under-
and relevant tips to consumers as part of their decision process, stand the product better and even address any questions that
rather than sponsored intrusions. For advertising to continue to consumers may have. Advertising will therefore evolve into a
truly engaging and immersive channel of communication, This holistic data set will enable marketing managers to
interaction, and experience, aimed at not only starting a con- identify consumers at a microlevel and be able to serve highly
versation with consumers but actually helping them buy. targeted and relevant ads to consumers, thereby enhancing the
Marketing managers will benefit from leveraging the likelihood of ad response and recall.
immense potential that virtual reality technologies have to offer
by allocating some of their media budgets to virtual- or aug-
mented-reality-driven customer engagement tools, such as The Internet of Things
mobile apps, online games, kiosks at retail locations, and the like. The ever-expanding network of Internet-connected devices,
or the “Internet of things,” as it is popularly known, is making
it increasingly easy to access information on not just consum-
Multiscreen Media Planning ers’ content consumption behaviors but also every activity
The focus of media plans will shift from channels to they undertake on a daily basis. Devices ranging from wear-
screens. Television continue to be a major channel of invest- able gadgets, virtual assistant devices, and software applica-
ment for brand advertising, but it is no longer only the screen tions to smart technology–based home appliances, among
that consumers interact with. others, are making a plethora of rich, real-time information
In recent years, the consumption of media, content, and available to marketers who will be willing to leverage this
entertainment has begun to spread across multiple screens opportunity to the fullest in the near future.
used by consumers—the first screen being televisions, the However, the omnipresence and connectivity that the Inter-
second being desktop computers/laptops, and the third screen net of things presents also brings a significant challenge for
being smartphones and tablets. Consumers often use these marketing managers. The omnipresence of connected gadgets
multiple screens in parallel with one another and simulta- means that context, not just content, is of paramount impor-
neously, in the same context or even different contexts. For tance. Sponsored messages and commercial advertising are
instance, a consumer could watch a network show on televi- unsolicited and tend to come across as intrusive when deliv-
sion and simultaneously research information on the show’s ered via the Internet of things. This makes it all the more chal-
cast via his or her laptop, and then share a personal impression lenging for marketing managers to design and deliver
of the show via the Twitter app on his smartphone. Given the messages in a manner that cannot be considered contextually
lightning-fast streaming/downloading speeds on devices, it is irrelevant or experientially obtrusive. Marketing managers
also possible now for consumers to be consuming all content should rather focus on delivering advertising messages in a
on a single handheld device. Marketers will have to be increas- way that actually enhances the overall functional benefit that
ingly cognizant of the multitude of such screens and factor consumers derive from these connected devices. This also
this multiscreen consumption into their media scheduling and means that marketers need to make a conscious shift away
budgets. from hard-selling their products via these devices and instead
While the degree of emphasis on television as a media focus on providing consumers with value.
channel may diminish to an extent, television is likely going to
continue to stay relevant. On the other hand, there is an unde-
niable shift in content consumption from print to digital, and Social Media Advertising
marketers will accordingly redirect an increasing proportion of Social media advertising has undoubtedly transformed the
their investments from print channels to digital channels, way marketers reach target consumers as well as how consum-
thereby gradually increasing the overall share of their digital ers interact with brands. Solicited and customized social media
portfolio. advertisements can be beneficial for both the brand and the
consumer. However, given the reach to target audiences that
social media networks provide, unsolicited yet personalized
Cross-Device Tracking and Delivery advertisements based on pages viewed could likely be the way
Taking programmatic targeting a few steps further, the mul- of the future. While social networks like Facebook and Twitter
tiscreen nature of consumption will also make it imperative for currently show paid advertisements, this concept could be
new ad delivery and tracking mechanisms to be established so attempted on all social networking sites. For example, users
as to get an accurate and holistic perspective of consumers as could be required to watch an ad before viewing an Instagram
they traverse across multiple screens. Cross-device advertising or Snapchat video, similar to YouTube. In this case, like the
will soon become the new standard for the industry, which music platform Pandora, consumers would have the option of
will help marketers in two ways: (1) delivering targeted ads to taking out paid subscriptions to skip advertisements. Last,
the same consumers irrespective of the device, thereby offer- while privacy concerns arise and users would have the option
ing a seamless, measurable experience, and (2) tracking the of opting out of unsolicited ads, many social network site users
consumers’ general browsing/viewing behavior as well as ad would not take the appropriate steps to opt out. Thus, future
response behavior across multiple devices. research in this area can be explored.
ADVERTISING IMPLICATIONS FOR ACADEMICIANS spending is also expected to grow, the growth rate is not as high
for online ad spending. The reason for this shift is due to the fact
Media
that more customers search for information via their mobile devi-
Over two-thirds of marketers expect the budgets for digital ces but could end up buying in brick-and-mortar stores. As the
media advertising to increase in the near future by 71% in penetration of mobile devices increases, every marketer will start
social advertising, 71% in online video, and 66% in search to focus on how to influence a customer’s journey through the
engine marketing (MarketingCharts 2014). On the contrary, information search and purchase process. While the growth of
the budget for print magazine advertising is expected to desktop and tablets has slowed down, the conversion rate to pur-
decrease by 36%, for print newspapers by 39%, for TV adver- chase is still higher in these devices than in mobile devices. To
tising by 24%, for radio advertising by 23%, and for outdoor take advantage of these multiple devices, message sequencing
advertising by 21%. While these changes reflect the viewing will become more prominent. Storytelling will become the art
trends of changing demographics, the relative effectiveness of and the duration of the message will be the science behind the
the media has not been explored in detail. Furthermore, the future of advertising. Therefore, future research should attempt
synergistic effect between the digital media and traditional to design studies to evaluate the contextual clues for the develop-
media is underresearched. Given these dynamics in the mar- ment of effective ads across multiple devices.
ketplace, the effectiveness of ad spending on sales and revenue
performance measures could vary over time. Therefore, further
research should focus on assessing the optimal budget for vari- Data
ous media by taking into consideration both the synergistic More data have become available not only on ad spending
effect and the time-varying effect of digital and traditional across media but also related to click-throughs, conversions, opt
advertising (Kumar, Choi, and Greene 2016). in, opt out, open rates, and so on. Further, data have become
more granular and are available at the customer level, product
level, and by each direct media (e.g., telephone, direct mail,
Content e-mail, text messages). Thus, the challenge for future research
Given the scope for the growth in mobile apps, text, and studies is to determine how to effectively combine various data
display ads, future research should focus on developing the sources and, furthermore, how to identify the value of each
relevant content for these media to make them more effective. source. In addition, customers who feel more engaged with the
The challenge here is consumers’ attention span. Therefore, firm are more willing to share their personal information. Thus, a
the content has to be relevant, targeted, and timely. Another true 360-degree view of the customers’ information search and
challenge is to incorporate recent purchase behavior and purchase behavior is available. Firms have to place value on
update ad content in real time. More studies are needed not such information, because they will have to pay for some infor-
only for measuring the effectiveness of such content but also mation and research is needed to guide them on how much to
regarding how much to update and how often to update based pay. Data are valuable only if they are converted to insights, and
on customers’ purchase behavior. Because more than one therefore relevant skill sets have to be developed within the firm
device in a household could be connected to a customer’s pro- or outsourced, which can also be expensive.
file, disseminating irrelevant messaging is a possibility. Thus, future research will have to evaluate the cost-benefit
Research should develop a contingency framework by taking tradeoffs of collecting such data across industries and markets.
into account such possibilities. The proposed framework could Few studies have attempted to demonstrate such value (Saboo,
include some screening questions to answer before directing Kumar, and Park 2016).
the user to relevant ads. Research relating to the number of
exposures should get heightened priority as the traditional rule
of these exposures in a given time interval may no longer be Modeling
valid. Given the proliferation of media, customers often switch Dynamic modeling approaches are fast replacing traditional
to different media; if ads could begin from where they left off static modeling approaches. While the combination effect of ad
in a previous viewing, they could be more effective. The future spending across media can be captured, such effects can decline
for testing ad content is ripe and rich, and more studies are over time. Therefore, models using Kalman filtering, state-space
needed to develop continued insights. modeling, and time-varying effects will be in increased demand.
Further, capturing synergistic effects across media, which can
also vary over time, is essential given the findings of Kumar,
Messaging Sequence Choi, and Greene (2016). Attribution modeling has become the
Researchers have predicted that mobile’s share of online ad buzz in the modeling literature as the demand for teasing out var-
spending will continue to grow to 46%, will grow close to ious effects has increased to all all-time high.
$80 billion by 2019, and that online advertising will exceed TV While reduced-form models are still the popular approach,
advertising by 2019 (MarketingCharts 2015). While TV ad structural models have emerged, especially using customer-
level data (Shah, Kumar, and Zhao 2015). Capturing the effec- Angell, R., Gorton, M., Sauer, J., Bottomley, P., and White, J. (2016), “Don’t Dis-
tiveness of ad spending is important, but return on advertising tract Me When I’m Media Multitasking: Toward a Theory for Raising Adver-
will be the main focus. This has eluded the ad industry for tising Recall and Recognition,” Journal of Advertising, 45 (2), 198–210.
Ansari, Asim, and Carl F. Mela (2003), “E-customization,” Journal of Market-
many decades as only aggregate data were available. With ing Research, 40 (2), 131–45.
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sales to show the association. But the findings were influenced to the Special Issue: Social Media and Business Transformation: A Frame-
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Atkin, Charles, and Martin Block (1983), “Effectiveness of Celebrity
ture to explain the role of advertising. But now, with the
Endorsers,” Journal of Advertising Research, 23 (1), 57–61.
advent of structural models, a proper theoretical structure can Bagozzi, Richard P., and Utpal M. Dholakia (2002), “Intentional Social Action
be proposed and tested. In the future, with faster computer- in Virtual Communities,” Journal of Interactive Marketing, 16 (2), 2–21.
processing capabilities, big data combined with superior Baker, Andrew, Naveen Donthu, and V. Kumar (2016), “Investigating How
modeling approaches that measure the return on advertising Word-of-Mouth Conversations About Brands Influence Purchase and
across media, product category, markets, and over time will be Retransmission Intentions,” Journal of Marketing Research, 53 (2), 225–39.
Baker, William E., and Richard J. Lutz (2000), “An Empirical Test of an
the need of the hour. Updated Relevance Accessibility Model of Advertising Effectiveness,”
Journal of Advertising, 29 (1), 1–14.
Balasubramanian, Sridhar, and Vijay Mahajan (2001), “The Economic Lever-
CONCLUSION age of the Virtual Community,” International Journal of Electronic Com-
The influx of technology and the big data revolution have merce, 5 (3), 103–138.
Barnes, Nora G., Ava M. Lescault, and Justina Andonian (2012), “Social
changed the marketing climate irreversibly. Geographical Media Surge by the 2012 Fortune 500: Increased Use of Blogs, Facebook,
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been replaced by “engaging.” Consumers are more connected, keting Research, University of Massachusetts Dartmouth Dartmouth, MA.
more informed, more empowered, and more spoiled for choice Berthon, Pierre R., Leyland F. Pitt, Kirk Plangger, and Daniel Shapiro (2012),
than ever before. The formerly prevalent one-way broadcast of “Marketing Meets Web 2.0, Social Media, and Creative Consumers: Implica-
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conversation between brands and consumers. As consumers Social Judgment: Bias, Expertise, and the Judge’s Point of View,” Journal
take control of this conversation, marketing managers must of Personality and Social Psychology, 37 (1), 48–74.
resist the temptation to try to wrestle the control back from Biswas, Dipayan, Abhijit Biswas, and Neel Das (2006), “The Differential
them and instead focus on facilitating this sense of control and Effects of Celebrity and Expert Endorsements on Consumer Risk Percep-
tions. The Role of Consumer Knowledge, Perceived Congruency, and
engagement and be poised to learn from the process. The Product Technology Orientation,” Journal of Advertising, 35 (2), 17–31.
framework presented in this study offers a blueprint for mar- Chung, K.Y., Derdenger, T.P., and Srinivasan, K. (2013), “Economic Value of
keting managers to take into account while designing their Celebrity Endorsements: Tiger Woods’ Impact on Sales of Nike Golf
marketing and advertising plans. In the future, the effective- Balls,” Marketing Science, 32 (2), 271–93.
ness of advertising will depend on the extent to which market- DeCarlo, Thomas E., Russell N. Laczniak, Carol M. Motley, and Sridhar Ram-
aswami (2007), “Influence of Image and Familiarity on Consumer
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trends. The future will belong to those advertisers that Entities,” Journal of Marketing Theory and Practice, 15 (1), 41–51.
empower and engage consumers through relevant, reliable, Dholakia, Utpal M., Richard P. Bagozzi, and Lisa Klein Pearo (2004), “A
and targeted communications that treat the consumer not as a Social Influence Model of Consumer Participation in Network and Small
statistical data point but as an equal relationship partner. Group Based Virtual Communities,” International Journal of Research in
Marketing, 21 (3), 241–63.
Donthu, Naveen (1998), “A Cross-Country Investigation of Recall of and Attitude
toward Comparative Advertising,” Journal of Advertising, 27 (2), 111–22.
ACKNOWLEDGMENTS Edwards, Steven M., Hairong Li, and Joo-Hyun Lee (2002), “Forced Exposure
We thank the editor and the reviewers for their valuable and Psychological Reactance: Antecedents and Consequences of the Per-
ceived Intrusiveness of Pop-Up Ads,” Journal of Advertising, 31 (3), 83–95.
feedback on an earlier version of this article, as well as for
Erdal, Ivar J. (2011), “Coming to Terms with Convergence Journalism: Cross-
giving us the opportunity to contribute to the field of adver- Media as a Theoretical and Analytical Concept,” Convergence: The Interna-
tising. We also thank Amalesh Sharma, Gayatri Shukla, tional Journal of Research into New Media Technologies, 17 (2), 213–23.
Ericka Robinson, and Hannah Kim for their valuable feed- Freiden, Jon B. (1984), “Advertising Spokesperson Effects: An Examination
back on the earlier versions. We thank Renu for copyediting of Endorser Type and Gender on Two Audiences,” Journal of Advertising
Research, 24 (5), 33–41.
the manuscript.
Friedman, Hershey H., and Linda Friedman (1979), “Endorser Effectiveness
by Product Type,” Journal of Advertising Research, 19 (5), 63–71.
Gambetta, Diego (1988), Trust: Making and Breaking Cooperative Relations,
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Journal of Advertising

ISSN: 0091-3367 (Print) 1557-7805 (Online) Journal homepage: www.tandfonline.com/journals/ujoa20

Conceptualizing the Evolution and Future of

V. Kumar & Shaphali Gupta

To link to this article: https://doi.org/10.1080/00913367.2016.1199335

Published online: 14 Jul 2016.

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Conceptualizing the Evolution and Future of Advertising

television, when you log on to your social media network,

FIG. 1. Integrated framework of the future of advertising.

G5: Data-driven advertising and measurable, targeted, and data-

G16: Electronic word-of-mouth communication will become the

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