In Ad Group Ads, Feature Your Advantages

Teaming up with other retailers to fund a media campaign can save you money and allow you to diversify marketing dollars. But some researchers at New York University and University of Florida recommend caution. They point out the importance of your store's distinctive advantages being featured in the advertising.

      The researchers looked at what happens with generic ads designed to promote consumption of an entire product category. Examples include the Florida Citrus Board's ads for orange juice and the Midwest Dairy Association's "Ah, the power of cheese" campaign. Generic advertising intends to increase overall demand, but not selectively favor certain members of the advertising group funding the ads.      However, the researchers found that this objective was often not met. When the generic ads for orange juice emphasized nutritional advantages, this helped the Albertson's store brand more than it did the premium Tropicana brand. The effect was the other way around when the generic ads emphasized the value of good flavor.

      An assumption behind ad group advertising is that the value of the featured advantage—such as nutrition or flavor—will grow in the consumer's mind, while the importance of the other advantages will not be disturbed. Talking about nutrition doesn't decrease the value of flavor for the consumer, it's said. But again, the research disproves the assumption. An ad highlighting nutrition will lead to the consumer placing less value on other attributes, such as flavor.

      When it comes to retailer advertising groups in which you participate, restricting the ad messages to characteristics all members have in common might not be realistic. Instead, solve the problem by being sure funds are allocated in a way that allows for a set of advertising messages, not only a single message. Different ads can feature different distinctive advantages of the ad group members' businesses.