Advertisements are becoming all pervasive in our lives today as marketers find new ways to integrate them into our daily routines. But do they actually work? Eugenia Lee investigates.

‘It’s a big ad, expensive ad, this ad better sell some bloody beer.’ So did it?

In 2005, Carlton Draught’s “Big Ad” by George Patterson and Partners attracted a million views globally within the first two weeks of its release and later garnered multiple awards, proving to be Australia’s most popular TV advertisement.

After a year, Nielson released figures suggesting beer sales in NSW went up by 36 million extra beer bottles.

The cost of the ad and therefore the amount of profits was never disclosed by Carlton Draught. However, it does not defy the fact that popular ads can bolster sales.

The Australian Financial Review reported in 2008 that advertising revenues were declining across the traditional mediums of print, TV, radio, and outdoors, suggesting a lack of success in these areas.

Yet experts stress that such reports should not be seen as showing the ineffectiveness of traditional advertising but rather the changes in consumer consumption.

Dr Paul Harrison from Deakin University, specialises in advertising and consumer psychology, and says that while old school advertising is dying, there is still value in targeting consumers.

“I don’t think it (advertising) is a waste of time. The problem is the interruptive broadcast model. It isn’t as effective as it used to be because the market itself is so fragmented,” he says.

Ben Lilley, CEO of creative advertising agency SMART, says in most cases traditional forms of advertising no longer work.

“Advertising requires a much more strategic approach now. But it is just as effective as it ever was if not more… and new media options and communication strategies allow markets to be more targeted in how they reach consumers.”

Part of that marketing strategy is to make sure the company infiltrates consumers in as many ways as possible.

While Dr Harrison says this type of advertising benefits the big multinational companies such as McDonalds, rather than the smaller niche brands, crossing advertising platforms is the most effective.

“Advertising works when people retain connections of sorts in their minds to the brands. And repetitive exposure in multiple platforms helps to strengthen these associations making the brand more familiar.

“Running a television ad on its own isn’t effective – you’re only marketing strategy is running ads. It’s not going to have any effect on [consumer] behaviour at all.”

Advertising is a costly process. The American Super Bowl is known for opening up the floodgates of advertising, making a 30 second spot cost around one million US dollars.

Here in Australia, ads can range from as little as a few hundred dollars to a few hundred-thousand depending on the scope of coverage.

But how, if any, do they influence consumers?

Cadbury's eyebrow ad has over five million Youtube hits. Image: renaissancechambara

Dr Harrison says the impact of advertising is subtle and that the success of ads largely relies on whether the consumers are looking for products or not.

For university student, Tiia Metzke, brands are a way for a person to define themselves, whether it is through clothes, cars, handbags, or computers.

“Ads definitely influence the way I buy,” says university student, Tiia Metzke.

“I’ve noticed that I’m very easily persuaded by well-executed ads that target my age group, and I will often buy something just to try it because it looked cool in the ad.”

Dr David Waller, senior marketing lecturer at the University of Technology, says that encouraging buying behaviour is not a bad thing.

“It’s a reminder about the brand name. So just having thousands of dollars on magazine advertisements for some companies is just to help promote their brand image.”

“There’s definitely value for companies to use advertising but they might have to be a bit more efficient and effective in trying to find the best way to use advertising.”

To catch up with the internet generation, advertisers have sought social networking sites to place their ads and better target their audience.

According to eMarketer, US advertisers are expected to spend $1.4 billion between this year and next to make this happen.

However, Dr Harrison says this is a reality that most advertising agencies are struggling with.

“Forced advertising like pop-up ads is just not as effective when we can switch off, change, and ignore,” he says.

This sentiment is also echoed by the consumers.

Charlotte Scotton, 20, says she believes this is a better way of advertising as opposed to other intrusive methods online such as hotlinks and pop-ups.

“I hate the pop-up ads. I close them immediately because I think it’ll be a virus. But social networking sites are credible and popular and I think advertising on them would be a great way to draw attention to different businesses.”

As a result of reduced expenditure following the financial downturn, businesses have also resorted to other methods to get their message across such as the word-of-mouth website, WOMOW.

The website is used by businesses to get promoted through reviews at $59 a month.

Lee Davies, owner of Salon Lavan in Melbourne, says the site has played a crucial role in her business which has attracted 38 customer reviews and ratings so far.

“It’s fantastic. I get probably 12 new clients a week from WOMOW and it’s the only form of advertising I need to do.”

As a WOMOW member, Miss Scotton embraces the shift to a less business-mediated environment.

“It’s useful to look at other people’s ratings because you trust that a lot more than getting any kind of reassurance from the actual business themselves. They’re consumers like you are so you can take advice from their experiences.”

In order to keep a brand alive, experts say businesses must first understand that advertising alone cannot do all the promotional work. And secondly, advertisers must maintain their relevance with their audience.

“It’s a bit naïve to think that you can put all your resources into one particular marketing activity,” says Dr Harrison.

“That is the mistake that particularly government policy makers make because they think advertising is this all powerful tool. It’s not like that; all sorts of factors need to be taken into consideration.”

Although the RTA’s pinkies campaign which targeted young male drivers about speeding was received well, the $100,000 ‘Don’t be a dickhead’ campaign launched late March this year has been largely unpopular.

The Age’s poll, which attracted 15,108 voters, showed that 76% thought the campaign was not successful.

Yet despite the statistics and product sales, Dr Waller says it is virtually impossible to measure the effectiveness of advertising because it varies according to the situation and to the medium.

“It’s a twelve billion dollar industry. Advertising isn’t a simple thing. There’s no golden formula for advertising.”