Advertising equity: How great advertising makes consumers want more advertising

Carin Fredlund

Uncovers findings from research which suggests that advertising equity captures a facet of brand equity not covered by established measures used in advertising and branding research.

Need to know

  • While brand equity is defined as the value of a brand, advertising equity can be defined as the value of a brand’s advertising. Advertising equity is not captured by traditional brand strength measures.
  • Benefits of strong advertising equity:
    • If a company's previous advertising is perceived as worthy of attention, consumers are likely to want to see their advertising even in the future.
    • Companies that have high quality communications are also perceived to offer better products and be better at product development.
    • If employees like the advertising and perceive it to be effective, it creates stronger motivation to...

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