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It is generally recognised that companies spend approximately 50% of their marketing budget on promotional activities. Advertising belongs to the most visible areas of a company’s activity. Therefore, it should not be surprising that the average recipient associates marketing with advertising, competitions and leaflets about new promotions delivered to houses or offices. Advertising, especially Internet advertising, is one of the most effective forms of marketing and one of the fastest developing areas of business. New channels of communication are emerging all the time – the Internet, digital television, mobile telephony; accompanied by new forms, such as the so-called ambient media. Advertising benefits from the achievements of many fields of science, that is, psychology, sociology, statistics, medicine and economics. At the same time, it combines science and the arts – it requires both knowledge and intuition. Contemporary advertising has different forms and areas of activity; yet it is always closely linked with the operations of a company – it is a form of marketing communication.

The indices of marketing communication presented in this chapter are generally known and used not only by advertising agencies but also by the marketing departments of many organisations. Brand awareness, advertising scope and frequency, the penetration index or the response rate belong to the most widely used indices; others, like the conversion rate or the affinity index, will get increasingly more significant along with the process of professionalisation of the environment of marketing specialists in Poland and with increased pressure on measuring marketing activities. Marketing indices are used for not only planning activities, but also their evaluation; some of them, such as telemarketing, mailing and coupons, provide an extensive array of possibilities of performance evaluation.

Purpose – Marketers are under increasing pressure to demonstrate the financial return associated with marketing expenditures. Concurrently, more attempts at measuring return on investment from marketing as well as achieving other long-term goals such as building brand equity and increasing shareholder value have been made. As a result of this emphasis, the degree to which advertising budgets are spent efficiently and the impact of these expenditures on the bottom line are an important topic to study.

Methodology/approach – This study applies data envelopment analysis (DEA) to a group of large firms to assess the degree to which companies spend advertising dollars efficiently and to examine the impact of advertising efficiency on investor behavior and, ultimately, stock prices.

Findings – The analysis reveals that firms that advertise more efficiently are rewarded by investors by positive stock returns.

Research limitations/implications (if applicable) – The study is limited to large enterprises with strong brands within a time frame of only four years.

Practical implications (if applicable) – The results imply that it is advisable for marketing managers not to limit their focus to increasing market-based assets at any cost. The efficiency of their efforts can send a positive signal to investors and contribute to shareholder value enhancement.

Originality/value of the chapter – The chapter finds investors to pay attention not only to the effectiveness of advertising activities but also to their efficiency. The study also demonstrates how DEA and stock return response modeling can be combined to investigate the link between advertising efficiency and investor behavior.

To explore and measure wearout or the acceptance threshold, beyond which, messages in the form of mobile text advertising generate irritation. To assess the set of factors that positively or negatively, according to literature, influences the attitude towards advertising in short message service (SMS) format and on this basis to propose future research along this line. There is also a focus on irritation antecedents.

Two surveys are used to prevent unbiased answers. The first one is driven to study the wearout effect in the SMS context. An offline survey is carried out using a structured questionnaire. A sample size of 188 using convenience sampling is collected. The second research is driven to study irritation and attitude towards SMS advertising. Data are collected through an online questionnaire which is published through social media platforms, an e-mail mailing list and a quick response (QR) code. An international sample size of 253 applying a convenience and snow ball sampling procedure is collected.

The wearout threshold and irritation antecedents in the mobile advertising context are identified as well as positive and negative factors which influence attitude towards SMS advertising. The replies do not match exactly with the significant factors found in previous research.

There are some, among them, sample size and sampling procedure; only one sector was analysed and, although reliability is acceptable, the number of items in each measurement scale was reduced to only two.

Wearout and the characteristics of an SMS message capable to generate positive attitude are described.

Guidelines to improve public attitudes towards SMS advertising and prevention from wearout are given.

Wearout in the mobile advertising context is explored and some insights regarding irritation antecedents and the role played by frequency and other positive factors in the causal model proposed by the academy are assessed.

The purpose of the chapter is to understand advertising attention in new formats. More specifically, it argues that new advertising formats might force advertising practitioners and researchers to reframe the challenges of gaining attention as one of understanding advertising approach rather than advertising avoidance.

The chapter is conceptual and builds on a review of literature on advertising attention, advertising avoidance, and advertising approach.

The chapter concludes with a review of future research directions. More specifically, it points out implications of shifting perspective from advertising avoidance to advertising approach for advertising practitioners and researcher alike.

The chapter offers a novel perspective on advertising attention in new advertising formats. In doing so, it hopes to stimulate more research on consumers’ willingness to approach (rather than avoid) advertising.

The impact of DTC advertising of prescription drugs on consumers has been the subject of considerable debate worldwide. Proponents of DTC advertising argue that it allows patients to make more informed decisions, helps address under-treatment of some medical conditions, and improves the economic value of health care, among other benefits. In contrast, critics of DTC advertising contend that it leads to consumers paying higher prices, patients potentially being misled about risks and benefits of drugs, and patients pressuring doctors to prescribe drugs. The authors examine this debate in the context of two leading theories on the effects of advertising – the Advertising=Information and Advertising=Market power schools of thought and review empirical studies that have examined the impacts of DTC advertising on consumers. It is found that the research evidence generally favors the Advertising=Information school, which is supportive of the idea that DTC helps patients become more informed and communicate more effectively with their doctors.

Often when we think about the need for democracy and democratic values we look externally to other countries like China, Russia, the former Soviet Union, and various banana republics. Today, the role of democracy is even challenged in the United States. Some candidates are even calling for more socialism.

But, are we even living up to democratic values today? About 98 million eligible voters did not vote in the 2016 election. Increasing number of surveys highlights the loss of democratic values. The continuous attacks by our president on free press and other democratic values, truth, and science are a fundamental threat to our most treasured values.

We believe that marketing, if practiced in an enlightened, positive, and ethical way, can help restore our democracy and democratic values. We elaborate on these values and how marketing can play a role in restoring democracy.

We hope that after reading our chapter you will join our movement to restore democracy and democratic values in America.

By the end of this chapter, you should be able to demonstrate an understanding of:

The importance of big data in the information revolution.

The resource-based view of the firm and dynamic capabilities as they relate to big data.

The use of big data in marketing decisions.

Consumer security concerns over the storage and processing of big data.

It seems that the Internet boom, which started at the end of the 1990s and finished with the spectacular collapse of the so-called dotcoms, is probably over. We are currently enjoying a period of fast and stable growth. This is manifested by the growing number of both Internet users and companies which – to an ever-increasing extent – use the Internet as a form of communication (both internal and external), promotion, sales etc. Expenditures on Internet advertising are growing continuously and now constitute more than 25% of all advertising expenditure. A natural consequence of this development is the need for the standardisation and organisation of the world of the Internet. These activities will result in a greater awareness of the benefits which this medium provides, increasing the possibilities of its use, and – most importantly – the opportunity to evaluate the return on investments made on the Internet. Nowadays, it is clear that many companies are striving to increase the quality of their activities on the Internet or to improve the effectiveness of such activities. As a consequence, the number of companies that look for indices which would enable the making of more precise and effective decisions in the scope of online operations is growing.

This chapter is dedicated to the phenomenon of the increasing role of the Internet in business, including the scale of its use by Polish and international companies. We present the most commonly used measures of marketing activities on the Internet and in social media. This group includes the indices which make it possible to determine whether a company actually needs a website. Other measures allow for the improvement in the effectiveness of the activity on the Internet, whereas others specify the costs of activities on the Internet and often serve as the basis for settlements between a company and advertising agencies or companies specialising in website design. It is worth emphasising that the Paid, Earned, Shared, Owned (PESO) model, worked out by Don Bartholomew,¹ is the basis for creation and description of indices concerning social media. This model has gained certain popularity in the social media industry. It does not, however, specify how individual indices should be named and calculated. It maps already existing indices and adapts them to specific levels of marketing communication measurement. All the measures indicated by the author of the model have been grouped into five major areas: exposure, engagement, brand awareness, action and recommendations. This model– similarly to all models of performance measurement – inspired by the sales funnel concept, adjusts certain standard indices and proposals of measurements for specific levels. Additionally, the measures are divided into four types, depending on who the owner of the content is: Paid (P) – refers to all forms of paid content; Owned (O) – all websites and web properties controlled by a company or brand; Earned (E) – the contents about a given brand created spontaneously by Internet users; and Shared (S) – the contents shared by Internet users.

This research investigated the market conditions caused by IPO advertising by examining the impact of IPO advertising, based on the US stock market from 1986 to 2009. The relationship between advertising intensity in the IPO year and the degree of IPO underpricing was examined. It was found that an increase in advertising intensity around an IPO event increases the initial returns. Simultaneously, however, advertising intensity around an IPO event also increases the degree of overvaluation, which raises the question as to whether advertising serves primarily as a mechanism to convey a firm’s true value to investors. The theoretical valuation of IPO and the relation between IPO advertising and the degree of stock overvaluation are discussed. Based on the Peasnell’s (1982) residual-income valuation framework (henceforth RIV), IPO advertising was proved to cause stock price to be more overvalued in the secondary market: a positive relationship was found between advertising and the degree of stock overvaluation relative to its theoretical value. Accordingly, an alternative hypothesis, that advertising inflates the short-run stock price, was proposed. The results of this study are consistent with the view of Purnanandam and Swaminathan (2004), namely that the stock price of newly listed firms can be overvalued.