New Product Messaging Effectiveness
New product messages are very effective at moving brand metrics such as ad recall, unaided awareness, and purchase intent. L’Oreal's brand Vichy, Mead Johnson, eSpoir, Innocent, Sonos, Motorola, Jaguar, Universal Pictures, Asian Paints and Amazon improved their brand metrics through advertisements while launching their new products.
ADVERTISING AND BRAND METRICS: GENERAL
NEW PRODUCT LAUNCH AND ADVERTISING IMPACT Advertising creates awareness about a new product.Suh, Kim, and Im (2018) have observed that when launching a new product, "a convincing and creative advertising campaign will capture the attention of consumers." They also note that advertising "would increase purchase decision."
CASE STUDIESWhen Vichy, a skincare brand under L’Oreal launched a new product in Hong Kong through 12 video advertisements, it could increase sales by 37%, ad recall by 33%, and ad brand consideration by 40%.Mead Johnson Nutrition, an infant nutrition formula manufacturer, used video advertising and photo advertising on Facebook and Instagram about its new product and got a 27-point increase in ad recall, a 15-point increase in brand preference, and a 14-point increase in purchase intent.eSpoir, a beauty brand, used video advertisement for its new product launch and increased its ad recall by 28.5 points and purchase intent by 8 points. Innocent, a company that sells natural smoothies and juices, launched its new coconut water product with the accompaniment of Facebook video advertising and achieved a 24-point increase in ad recall, a 3-point lift in familiarity, and 92% success on target reach.Sonos, a wireless speaker and home sound system company, launched its Sonos One smart speaker through Twitter First View advertising and gained 58% higher view rate, 10% increase in positive brand sentiment, and a 2.5-point increase in purchase intent.Motorola launched its new Moto Z smartphone through Twitter First View advertisement and the brand achieved a 3 times lift in follows, 19 times lift in daily average mentions, and 87.5 million brand impressions.Jaguar launched its new luxury vehicles, XE and F-PACE, through Twitter First View advertisement and got a 36% lift in positive brand sentiment, and a 12% increase in brand favorability.Universal Pictures launched its summer blockbuster movie, Jason Bourne, through Twitter First View advertisement and garnered huge success.Asian Paints launched its multi-category home improvement store, AP Homes, through immersive mobile advertising and achieved 1.6 million impressions in 2 months, two times click-through rates as compared to average industry rates, and 3,366 user footfalls in stores.Amazon has reported that Airheads, a chewing gum manufacturer, achieved a 120% increase in aided awareness when they advertised their new product through Amazon.
- The 10 case studies above support the assertion that advertising has improved brand metrics when published along with a new product launch.