Retail Advertising Creativity in the Real World: Live from New York

1. Retail Advertising Creativity in the Real World: Live from New York Are Retail Advertising Campaigns More or Less Creative?

2. EAERCD 7th Annual Conference on Retailing and Commercial Distribution Univ of Gloucestershire Business School, July 10-12, 2002 • Wayne State University, USA • Authors: • Sheila L. Sasser, Ph.D. Doctoral Candidate & Senior Lecturer at WSU • Dr. Scott Koslow, Senior Lecturer, University of Waikato, Visiting Professor WSU • Dr. Edward Riordan - Professor, WSU • s.sasser@sasscomm.com or ad1085@wayne.edu • www.sasscomm.com

3. Detroit, Michigan USA sheila.sasser@wayne.edu

4. Research Questions • Creativity is impacted by key factors…. • Strategy, originality & artistry • Budget, client, & time issues • Career Areas within the agency • Continued quest for What Drives Creativity taking us to the far corners of the globe….this Creative Safari has • bagged a few findings

5. Retail Research Questions • R1: Retail advertising campaigns will vary in subjective creativity from other advertising campaigns. • R2: Strategy, artistry, and originality will be significantly different for retail advertising campaigns as compared to all other campaign categories. • R3: Retail ad campaign factor measurements of time and budget variables are no different as compared to others

6. Methodology • Personally facilitated on site • Painfully laborious at times • Food incentive if at meal time • Pizza most popular, JWT White Castle Sliders, • Breakfast at BBDO (vs Tiffany’s), Cookies & Bagels • Most difficult scenario were with ground zero agencies • Printed & Electronically Emailed Surveys • Email, Mailed, & Faxed Surveys also • Stratified Agency Convenience Sample of Desired Population (3 Campaigns ~ 5 years) • Conducted from 1998-2002 in DTW, NYC, (Miami)

7. Methodology began with participant observation analysis from managing & consulting with New York & Detroit ad agencies over the last 20 years. Depth interviews, focus groups, and pilot questions were conducted as a first step domestically with global groundwork laid early on...

8. Methodology • 1000 Total Sample Campaign Observations • 573 Analyzed for Retail Comparison • On site Intercept Method at Offices • Advertising Agency Executives • New York & Detroit Domestic USA • Ad Agencies included Detroit Top 10 & NYC Top 20 • Highest ranking in terms of billings per Crain’s List • Including BBDO, JWT, Y&R, Saatchi, D’Arcy, DDB, Doner, Campbell-Ewald, Lowe-Lintas, McCann, Gotham, Euro RSCG, Bozell, Meridian...

9. Research Findings • SAS Analysis • Ongoing compilation of massive data base as surveys are completed… • Pakistan global pilot for developing countries just delivered 50 surveys… • Zimbabwe in early depth interviews... • Initiating Paris, London, Hamburg, Stockholm, Greece, Ukraine, Asia for 4th Q 2002.

11. Table 1 continued…

20. Do Retailer Advertising Campaigns Differ in Terms of Creativity?

21. Findings • 47 retail campagins were analyzed out of 573 campaigns in the data base collected which is consistent with overall retail billings on average at most major ad agencies. Retail campaigns were coded 1, while others were coded 0 in the Correlation Matrix shown next.

22. Statistics • Retail Freq % Cum Freq Cum % • 0 526 91.8 526 91.8 • 1 47 8.2 573 100.0 • Eigenvalues of the Correlation Matrix: total = 18, average = 1 were analyzed according to the NFACTOR criterion, 5 factors were retained • Strategy, artistry, originality, budget & time

23. Statistics Factor Pattern 5 factors • factor 1 factor 2 factor 3 factor 4 factor 5 • Strat 1 0.503 -0.222 .564 .106 .08 on strategy • Strat 2 0.487 -0.203 0.611 0.156 0.13 a good fit • Strat 3 0.489 -0.24 0.587 0.185 -0.138 appropriate strat • Strat 4 0.525 -0.236 0.529 0.039 -0.129 built on good strat • Art 1 0.740 0.256 -0.198 0.132 -0.386 able to stand as art • Art 2 0.723 0.268 -0.244 0.090 -0.423 appreciated as art • Art 3 0.720 0.139 -0.020 -0.046 -0.185 emotionally express • Art 4 0.764 0.253 -0.152 0.077 -0.175 artistically sophist • Orig 1 0.768 0.203 -0.07 -0.088 0.228 original • Orig 3 0.783 0.203 -0.122 -0.082 0.392 unexpected • Orig 4 0.784 0.165 -0.151 -0.076 0.240 novel • Orig 5 0.794 0.226 -0.152 -0.112 0.311 different • V2 -0.069 0.476 0.382 -0.465 -0.047 budget 1 run over • V8 0.286 -0.538 -0.270 0.459 0.0276 budget 2 ample $$$ • V15 -0.212 0.611 0.333 -0.446 -0.115 budget 3 too small • V16 -0.343 0.643 0.202 0.387 0.026 time 1 not enough time • V23 -0.316 0.589 0.086 0.494 0.106 time 2 if more time • V30 -0.219 0.579 0.107 0.540 0.096 time 3 process rushed • Variance explained by each factor: Factor 1 = 6.0309 Factor 2 = 2.577 • Factor 3=1.9000 Factor 4 = 1.453 Factor 5 = 0.853

24. Findings • Initial factor method of principle components shows the final communality estimates with a total of 12.814, the range was from .576 for artistic variable of emotionally expressive to .842 on the artistic variable of being appreciated as art • All strategy variables were consistently in the .631 through .696 range • Originality ranged from .631 through .696

25. Findings • Using the Varimax rotation method, an orthogonal transformation matrix was constructed to achieve a rotated factor pattern, using same variables as before, this revealed the heaviest loading for factor 1 and the least loading for factor 5 with a much tighter spread than before, the new range with Varimax is 2.005 to 3.339

26. Findings • ANOVAs were compiled on the following dependent variables • subjective creativity as rated by respondent • strategy • art • originality • time • budget

27. Retail Findings Analysis • R1: Retail campaigns were not rated as any more or less creative by advertising agency respondents • This debunks much popular myth that retailers limit creativity in their advertising • Respondents had worked on numerous retail ad campaigns including many of the largest US Grocery Retailers, Mass Discount, Dept, Specialty, and Category Killers such as Kmart,Borders, Circuit City, Pier One Imports, Pamida, Kroger, Meijer, Macy’s, Saks Fifth Avenue

28. Retail Findings Analysis • R2: Strategy, artistry and originality • no evidence indicated that these variables are significantly different for retail advertising campaigns as compared to all other campaign categories.

29. Retail Findings Analysis • R3: Retail advertising campaign factor measurements of time and budget variables will vary significantly from other campaigns… • They are no different based on rigorous statistical analysis than other campaigns…no more or less brutal than the norm apparently...

30. The Quest for Retail Creativity • In many cases, budget limitations spark greater creativity and integration of advertising campaigns…having to do more with less may inspire greater innovation • Since retailers are notorious for this type of behavior with ad agencies, perhaps it prompts positive creativity? • Retailers and ad agencies may be more alike than different…empathy factor!!! • There may potentially be other affects that were not controlled for, a potential limitation, maybe retailers who work with large agencies are more adept as clients?

31. Next Steps… Paris, London...

32. Hamburg, Frankfurt, Munich

33. Rome, Cairo, Zimbabwe?...

34. Limitations & Implications • Subjective Assessment of Creativity • Recent Campaigns Recalled • Ground Zero Effect 9/11 • More Research Needed Longitudinally • Creativity Remains Elusive • More Understanding of Retail Ad Behavior

35. Thank YOU!