The first of a new series of papers called Advalue, to be published by IPA, concludes that advertising contributes to corporate profitability and business success.
The independent three-month study used data supplied by PIMS (Profit Impact of Market Strategy) and came to the following conclusions:
advertising impacts on customer value through its effect on perceived quality thus increasing profitability
it is how the money is spent that matters – not how much more is spent than competitors
the nature and content of advertisements really do matter – focusing on product image or company reputation affects the customer’s perception of quality and therefore value.
The series of 10 Advalue papers is planned to span two years, and has been created by the collaboration of IPA, research and media companies and consultancies, and senior advertising managers.
Copies of Advalue 1 are available from Anne Fittal, publications officer, currently, and the second in the series is due out in November.
IPA: 0171 210 8201
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