The Impact of Advertising Creative Strategy on Advertising Elasticity

This study provides a comprehensive assessment of the impact of advertising creative strategy (ACS) on advertising elasticity, founded on an integrative framework that distinguishes between the function (content) and form (execution) of an advertising creative. The authors evaluate function using a three-dimensional representation of content (experience, affect, cognition), whereas the representation of form accounts for both executional elements and the use of creative templates. The distinction between function and form allows for the investigation of potential synergies between content and execution, previously unaccounted for in the literature. The ACS framework also facilitates the calculation of composite metrics that capture holistic aspects of the creative strategy, such as focus (i.e., the extent of the emphasis on a specific content dimension) and variation (i.e., changes in content and execution over time). The empirical application focuses on a dynamic linear model analysis of 2,251 television advertising creatives from 91 brands in 16 consumer packaged goods categories. The findings show that for function, experiential content has the greatest effect on elasticity, followed by cognitive and affective content. Function and form produce synergies that advertisers can leverage to increase returns. Finally, focus, variation, and the use of templates increase advertising elasticity.