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HIDDEN E-MARKETING the Potential Usage of Subliminal Messages in Online Advertising

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HIDDEN E-MARKETING the Potential Usage of Subliminal Messages in Online Advertising HIDDEN E-MARKETING The potential usage of subliminal messages in online advertising Bachelor Thesis Marketing 2010 Student: S612239 Johan Pieter Volkerink Supervisor: Drs. P.M.A. Tenbült In this bachelor thesis, literature on the effectiveness of subliminal messages will be transposed to the online environment, trying to find a solution for the nowadays lack of effectiveness in online banner advertising. Table of contents Abstract 2 Chapter 1: Introducing the problem 3 1.1 Problem background 3 1.2 Problem statement 4 1.3 Research questions 4 1.4 Managerial relevance 5 1.5 Academic relevance 5 1.6 Following chapters 6 Chapter 2: Online advertising 7 2.1 Narrowing down 7 2.2 What is online banner advertising? 7 2.3 Online versus offline advertising 8 2.3.1 Push versus pull 8 2.3.2 Consumer attitudes 9 2.3.2 Brand loyalty 9 2.4 The success of banner advertising 9 Chapter 3: Subliminal messages 11 3.1 The cradle of subliminal messages 11 3.2 Thresholds perspectives 12 3.3 Effectiveness of subliminal stimuli 12 3.3.1 Message complexity 12 3.3.2 Familiarity 13 3.3.3 Goal relevance 13 Chapter 4: Online banner advertising applications 15 4.1 Message complexity 15 4.2 Familiarity 16 4.3 Goal relevance 16 Conclusion, discussion & recommendations 17 5.1 Conclusion 17 5.2 Discussion & recommendations 18 References 19 1 Abstract In this bachelor thesis, literature on the effectiveness of subliminal messages will be transposed to the online environment, trying to find a solution for the nowadays lack of effectiveness in online banner advertising. The goal of this thesis is to answer the question whether and how subliminal messages can influence the effectiveness of online banner advertising. To give a clear answer for this matter, both the hazards and possibilities of online banner advertising and subliminal messaging have been investigated. Subliminal stimuli seem to have great potential for this matter, since there is much similarity between the factors that make subliminal stimuli effective and the online environment (i.e. message complexity, familiarity and goal relevance). Concluding, factors influencing the effectiveness of both domains are being linked to find out whether and to what extend subliminal advertising can be implemented to influence the effectiveness of online banner advertisements. Thanks to the abilities of online marketers to target their advertisements more accurate than ever, subliminal stimuli can be considered as a valuable online marketing tool. The real benefits for online banner applications using subliminal stimuli do not lie in the message complexity (which is indifferent for online and offline application), but in the other two factors influencing subliminal effectiveness: familiarity and goal relevance. 2 Chapter 1: Introducing the problem 1.1 Problem background When you surf on the web nowadays, you will be overwhelmed by the online advertisements. Several experts cast their doubt on the usefulness of these online banners (Brayles, 2002; Drèze & Hussherr, 2003), simply because they seem ineffective since the click-through rates1 are decreasing drastically (Sherman & Deighton, 2001). In fact, an interesting research by Drèze and Hussherr (2003) proves that potential online customers are not being lured by online banner advertisements. Moreover, their experiment concludes that their participants even deliberately avoid the online banners. Since advertisements online start to lose grip on the conscious mind, Drèze and Hussherr suggest that subliminal processing of advertisements might be an important factor influencing the effectiveness of online banner advertising. Meanwhile, in the field of cognitive psychology and consumer behavior, it is fascinating to notice the ongoing flow of research on behavior caused by subliminal stimuli, all trying to catch a glimpse of the findings of Vicary’s infamous cinema experiment (Broyles, 2006; Theus, 1994). In 1957 James Vicary claimed to have found a sales increase on Coca Cola and popcorn by flashing messages on the screen so fast that the conscious mind is unable to notice it. Several years later however, he admitted that his findings were fictitious (Pratkanis, 1992). From Vicary’s hoax in the fifties on, the research conducted on subliminal advertising focuses on offline approaches. It seems plausible though, that the World Wide Web might be an environment with many opportunities for subliminal advertising, since active information processing by online customers is dwindling strength (Drèze & Hussherr, 2003). Several researchers – like Cuperfain and Clarke (1985) or Karremans et al. (2006) for example – came up with factors that influence the effectiveness of subliminal stimuli. Offline, that is. In psychological literature, there never has been a focus on online applications of subliminal stimuli. On the other hand, most research on e-marketing does not take subliminal matters into account either. Why is that? Is such research irrelevant? Is there no difference between online and offline applications? Both issues seem implausible, since there is lots of difference between online and offline marketing practices (Schlosser et al., 1999), as well as 1 Click-through rates are the percentage of surfers that click on the online banner which actually sends them through to the advertiser’s website. 3 a big difference in consumer perceptions of advertisement online and offline (Danaher et al., 2003). 1.2 Problem statement What if Drèze and Hussherr are right? What if subliminal stimuli can indeed be applied to make banner advertising more successful? If there really is a possibility to implement the factors influencing the effectiveness of subliminal messaging into the field of online advertising, this may lead to useful applications in the online advertising environment. Therefore, in this thesis the following problem is stated: How can subliminal messages influence the effectiveness of online banner advertising? 1.3 Research questions To be able to find out whether the literature on subliminal advertising is applicable to online advertising, it is necessary to transpose the offline literature to the online environment. This will be done by answering the following research questions: Question 1: What is online banner advertising? Question 2: What makes online banner advertising successful? Question 3: What are subliminal messages? Question 4: Which factors influence the effectiveness of subliminal messages? Question 5: Which factors that influence the effectiveness of subliminal messages can be used to make online banner advertisements more effective? After answering these questions, the factors influencing the effectiveness of subliminal advertisements will be transposed in the conclusion. Then, factors which influence the success of online advertising will be compared with these factors, to find out whether it is possible to apply subliminal advertising theories online. Finally, recommendations will be given to suggest whether subliminal advertisements might be of practical use in online advertising. 4 1.4 Managerial relevance Linking the subliminal theories to the online environment could be very relevant for marketing management decision making. As will be shown in chapter 4, online marketing firms come up with different ideas than footloose researchers do. This could be because of self interest. Or it may be because of lack of new insights as this writing. Nevertheless, the statements on the success of online advertising seem to be at odds. Marketing managers should know whether subliminal advertising can be effective and if so, whether it can be applied on the internet. Only then they will be able to implement it within their marketing strategy. Unfortunately, theory on this applicability is absent. Nevertheless, firms shall be willing to invest in subliminal advertising research since according to Henderson (2010), the budgets for online advertisements are increasing, while the effectiveness of online banners decreases (Drèze & Hussherr, 2003). 1.5 Academic relevance Also from an academic perspective, research on the possible online applications of subliminal advertising will be most relevant. The marketing environment changes rapidly from offline to online and subliminal advertising might be able to play a role in this part of the digital revolution. There has a lot of research been conducted on subliminal messages and its effectiveness (Broyles, 2006; Theus, 1994), as has there been written a lot on the (lack of) success of online banner advertising. (Bayles, 2002; Danaher, 2003; Sherman, 2001) Nonetheless, the field of online advertising is relatively small (Manchanda et al., 2006) The link between these two fields however has not been mentioned in the literature that much. This can be because there is no consistent connection expected between them, which would make a study as this one irrelevant. However, this is not the case, since merely using the knowledge that online advertising lacks effectiveness and that subliminal effectiveness is moldable by marketers, makes the implementation of subliminal literature online look plausible. This thesis is relevant, because both fields are now combined, which can be an eye- opener for research in both domains. If only the theories will be studied and transposed to the online environment, a clear perspective will be present of the usefulness of subliminal advertisement for online practices. This will bring the work of researchers from the field of online marketing, consumer behavior and cognitive psychology closer
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