Open Advertisements & strong brands: an effective strategy for global advertising Key words Openness Brand strength Interpretation Valuing Global advertising About the authors Paul Ketelaar is a lecturer at the Communication Sciences section of the Radboud University in Nijmegen, the Netherlands and the Business Administration section at the Catholic University of Leuven in Belgium. Carlijn Evers graduated in communication sciences and is a communication worker at UBACHS / full contact (brand strategy and activation) Malou Arends graduated in communication sciences and is a project manager at DVJ Insights Marnix van Gisbergen is Research Director at DVJ Insights How do consumers interpret and value open and closed advertisements for strong and weak brands? The Communication Sciences section of the Radboud University in Nijmegen, the Netherlands, in collaboration with DVJ Insights Market research studied the effects of advertisement openness on the interpretation and valuation of advertisements. The effect of the strength of the brand in the advertisement was included in this international study. The study, which involved 1740 respondents from the Netherlands, Germany and the United Kingdom, showed that advertisers of strong brands do well to communicate with pictures rather than text. This emerged from, amongst other things, the notable result that under certain conditions open advertisements were valued higher than closed advertisements. The use of open advertisements also gets around language barriers, which often arise in global advertising. The use of open advertisements is a relatively new advertising strategy. Open advertisements consist primarily of pictures and make little or no use of textual explanation. This gentle pointing to the message is the central characteristic of open advertising. Little or no guiding text, a prominent image, rhetorical figures, a low level of brand anchoring and the absence of the product itself create more openness in the advertisement. This strategy goes against the ‘normal’ approach to advertising, in which the text makes the advertiser’s message clear. Consumers take pleasure in discovering the message for themselves, which gives them a feeling of satisfaction An open advertisement offers the recipients a great deal of freedom to construct the meaning of a message for themselves as the advertisement does not guide them directly to a particular meaning. Despite the widespread use of open advertisements in advertising campaigns, earlier research revealed mainly negative effects for openness on the interpretation and valuation of advertisements. However, this research took little account of the role that the brand can have in the interpretation and valuation of advertisements. A strong brand can, after all, guide a consumer to the message by association, an effect we earlier described as ‘brand anchoring’. In addition, little attention was given to the cross-cultural advantages of using open advertising with respect closed advertising. Method This study looked into the effects of both openness (open/closed) and market strength (strong/weak) on the interpretation and valuation of print advertisements. Forty advertisements were tested using an online survey that involved 1740 respondents, aged 20 to 39 inclusive, from the Netherlands, Germany and the United Kingdom. Four versions were created of each of ten advertisements (see Table 1 and Figure 1), (a) Open advertisement with strong brand, (b) Open advertisement with weak brand, (c) Closed advertisement with strong brand and (d) Closed advertisement with weak brand. An additional advantage of creating the advertisements ourselves was that noone could have seen then prior to the study. A precondition for creating the advertisements was that they were not too hard to understand and fitted-in well with the brand. In addition, visual metaphors were used that would work in the Netherlands, in Germany and in the United Kingdom. An example if this is the lion, which symbolises strength, courage and leadership in all three countries. Table 1: Advertisement overview Nr. Weak brand 1 Strong brand BlackBerry 2 Durex Pleazure 3 Panasonic Megapower 4 TomTom A+ Ride 5 Volkswagen Elgey 6 Lancôme Deraviza 7 8 Dash Whiskas WashIt Luckycat 9 Colgate Shine 10 Jeep Geop Table 3: Effects of brand strength, openness, and openness*brand strength on valuation. Analysis: Multiple regression Phonos β Openness 1.90 Brand strength Openness x brand strength This study shows that brand strength plays an important part in the interpretation and valuation of open and closed advertisements. Brand strength seems to have a positive effect on interpretation. This means that people are more often able to form an interpretation with strong brands than with weak brands, regardless of the degree of openness. In addition, the study showed that there are no differences in interpretation between open and close advertisements as long as the advertisement fits in with the brand and is not too difficult to interpret. Table 2: Effects of brand strength, openness and openness*brand strength on interpretation. (Analysis: Logistic Regression) Openness Brand strength Openness x Brand strength t .03* .05 .12 .03 4.40 .66 R² = .20 * p <.05 (two-tailed test) ** p <.01 (two-tailed test) Control variables: interpretation, attitude to advertisements in general and attitude to the brand. Brand strength has a positive effect on interpretation B .07** .01 b S.E. Wald sig. -.280 .161 .434** .146 .267 .218 3.029 8.844 1.501 .082 .003 .221 Chi squared: 90.642 (df: 11 sig .000); Nagelkerke pseudo R²: .049; * sign. at p < .05; ** sign. at p < .01 Control variables: appropriateness, difficulty, brand image, country, education, age and sex. Open versions valued higher With regard to valuation, it was shown that open advertisements are valued higher than closed advertisements, regardless of brand strength. Consumers apparently find it pleasant to look for an interpretation for these (easy) advertisements, and then it doesn’t matter whether the advertisement was for a strong or a weak brand. Negligible difference between countries Hardly any differences in interpretation and valuing were found between the countries studied. Dutch people, Germans and people from the UK can therefore form an interpretation pretty much just as often and The advantages Open advertisements are suitable for communicating in a cross-cultural context. The lack of text and the use of images is an effective way to advertise across borders as it gets around language barriers. The standardisation of the advertisement lowers costs because only one, textless, advertisement is needed for different countries. By using the same advertisement everywhere, there is better chance of achieving a uniform market image. have about the same valuation of the advertisements in the study. Strategy: a matter of choice The study shows that the open advertisements create opportunities for effective cross-cultural communication by advertisers. Open advertisements are just as well interpreted as closed advertisements (provided that they are not too difficult and fit in well with the brand). The advantage of an open advertisement is that it is less likely to evoke and aversion in the consumer as the message is not being pushed at them. Consumers experience pleasure at being able to figure out the message for themselves, which gives them a feeling of satisfaction. Moreover, open advertisements (images without text) offer many opportunities to advertise internationally because the language barrier is efficiently (quickly and cheaply) bypassed. However, this strategy seems to apply mainly to strong brands. For advertisers of weak brands, which evoke no clear associations, it makes more sense to use a closed advertisement. A weak brand provides too little guidance towards the desired message and in an open advertisement that would entail a too high risk of incomprehension or an undesirable message coming across. Figure 1: Four different versions of the advertisement for the strong brand BlackBerry and the weak brand Phonos. For more information please contact: info@dvj-insights.com, or call +31-(0)24-3502797