Journal of Marketing Behavior, 2016, 2: 177–194
Marketers’ Intuitions about the Sales
Effectiveness of Advertisements
Nicole Hartnett, Rachel Kennedy, Byron Sharp and Luke Greenacre
*
University of South Australia, Australia
ABSTRACT
Advertisements vary enormously in their sales effectiveness, so choos-
ing the more effective advertisements to air is an important marketing
task. Such decisions are often made intuitively. This study assesses the
intuitive predictions made by a global sample of marketers regarding
which television ads are more or less sales effective. The findings show
that marketers’ predictions were correct no more often than random
chance. Multivariate analysis suggests that those with category expe-
rience and those in marketing or consumer insights roles make slightly
better predictions. Aside from who makes better predictions, further
research is needed on how to improve advertising decisions, including use
of evidence-based decision support systems and team decision-making.
Keywords: Advertising, Consumer packaged goods, Television, Creativity, In-
dividual Decision Making, Marketing Decisions Models, Marketing
Information Systems
Making better marketing decisions than one’s competitors is important for
business success. Marketers must often decide which ads to air and/or what ads
to support with a substantial portion of their media budgets. These decisions
concern one of the largest expenses for consumer brand companies, with media
spending typically equivalent in value to profits (Sharp 2010). In this paper,
we examine the ability of marketers to choose ads appropriately. Specifically,
we ask a large group of marketers and advertising agency executives to predict
which ads they believe are better or worse in driving product sales and compare
these predictions with in-market results. Their predictions are made based
on intuition, which is commonly relied upon when deciding which ads to air
(Rossiter and Bellman 2005).
*
Nicole Hartnett, Ehrenberg-Bass Institute for Marketing Science, University of South
Australia. Rachel Kennedy, Ehrenberg-Bass Institute for Marketing Science, University of
South Australia. Byron Sharp. Ehrenberg-Bass Institute for Marketing Science, University of
ISSN 2326-568X; DOI 10.1561/107.00000034
© 2016 N. Hartnett, R. Kennedy, B. Byron, and L. Greenacre