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The Power of Advertising: How It Works and What Makes It Effective

Writer: Maarten KallenbergMaarten Kallenberg


Introduction


Numerous academic studies have confirmed that advertising, in general, provides a positive return on investment (ROI). However, these studies also reveal that individual campaigns produce widely different results. This article explores the mechanisms of advertising and what makes campaigns truly effective.



How Advertising Works: Different Models


Advertising is complex because it does not follow a single, universal approach. The goal of commercial advertising is to influence consumer behavior, which can be achieved through different methods. Over time, several advertising models have emerged to explain how advertising drives sales and brand growth.


1. Rational Persuasion Model

The earliest advertising model assumed that consumers make rational decisions and simply need information to be persuaded. Advertisers believed that listing product benefits and features would be enough to convince consumers to buy. However, this approach lacked scientific backing and failed to explain why emotionally driven advertisements often performed better.


2. Emotional & Implicit Communication Model

As research in psychology advanced, it became clear that people act largely based on emotions and gut feelings rather than logic. This led to a shift in advertising strategy, emphasizing symbolism, imagery, sound, and emotional storytelling over rational persuasion.


3. Familiarity & Brand Exposure Model

Another perspective suggests that advertising works simply by making people more familiar with a brand. Even if an ad does not contain a direct call to action, repeated exposure increases brand trust and credibility. This is because human brains are wired to prefer things that are familiar.


4. Showmanship & Fame Model

Paul Feldwick, in The Anatomy of Humbug, highlights the idea that advertising can act as a form of showmanship, capturing attention and entertaining audiences. Bob Hoffman, a respected advertising expert, simplifies this model into three words: "Make Me Famous."



What Advertising Research Reveals


The Media in Focus report analyzed a vast database of advertising campaigns, uncovering key insights:


  • Campaigns aimed at building brand fame are the most effective, with 34% achieving large business effects.

  • Emotionally driven campaigns rank second in effectiveness.

  • Combining emotional appeals with rational messaging performs better than purely rational campaigns.

  • Purely rational ads tend to be the least effective.


Similar studies consistently show that emotional campaigns outperform rational ones, particularly in creating long-term brand impact.



My Perspective on Advertising


From my experience, successful advertising comes down to one key principle: building strong mental structures. Our brains store information in networks of interconnected concepts, meaning that the more frequently two concepts are activated together, the stronger their connection becomes. This is why advertisers aim to repeatedly associate their brands with desirable attributes or situations.


Effective advertising achieves two goals:

  1. Strengthens brand recognition in consumers' memories. This goes beyond recalling a brand name—it includes developing distinctive brand assets such as logos, colors, shapes, sounds, and even celebrity endorsements.

  2. Connects the brand to concepts that influence purchase decisions. These associations can relate to consumer aspirations (e.g., innovation, reliability, luxury) or specific usage occasions (e.g., McDonald’s promoting itself as a breakfast option).



The Role of Attention in Advertising


For advertising to work, it must capture attention. Without attention, brand messages cannot enter the consumer's memory. While some ads achieve this through active, focused attention, many succeed through passive, distracted attention—which some research suggests is even more effective, as it bypasses conscious resistance to persuasion.


Three Ways to Capture Attention:

  1. Novelty & Distinctiveness – Our brains are wired to notice things that stand out. Ads that break conventional norms tend to grab attention.

  2. Emotional Impact – Strong emotions (both positive and negative) enhance memory retention. Emotionally charged ads outperform logical, fact-based ads in long-term brand building.

  3. Relevance to Consumer Goals – Ads that align with higher-level consumer goals (e.g., status, financial security, enjoyment) generate higher engagement and stronger recall.



Creativity as a Key Factor in Advertising Success


Studies show that creatively awarded ads are seven times more effective than those without creative recognition. Creativity allows advertisers to present familiar messages in fresh, engaging ways, ensuring continued audience engagement while maintaining brand consistency.


Successful brands like Nike, Coca-Cola, and Axe have sent consistent core messages for decades, yet they continuously update their creative executions to stay relevant.



Consistent Messaging: Why It Matters


Brand memories fade over time, meaning brands must regularly reinforce their messages. However, advertisers must distinguish between consistency of message and consistency of execution:

  • Consistency of Message: The core brand proposition should remain stable over time.

  • Varied Execution: Creative approaches should evolve to maintain consumer interest.


Consumers recognize patterns. If different ad executions reinforce the same underlying message, the brand’s positioning strengthens over time.



Avoiding Overloaded Messaging


Many brands make the mistake of trying to communicate too many messages within a single ad. This overwhelms consumers and reduces retention. The best ads focus on one key message and communicate it effectively.


For example, Volkswagen has mastered single-message advertising, using minimal text and strong visuals to reinforce its key benefits without overwhelming viewers with technical details.



Branding: The Critical Element


A common issue in advertising research is low brand recall. Many ads entertain viewers but fail to clearly link the message to the brand. Smaller brands, in particular, are at high risk of poor brand attribution.

Branding should not be an afterthought. Instead, brands should:

  • Integrate brand elements naturally into the narrative.

  • Use distinctive assets throughout the ad.

  • Ensure branding is clear in emotionally impactful moments.



Conclusion: The Case of Centraal Beheer


A prime example of effective advertising is Centraal Beheer, a Dutch insurance company that built one of the most successful advertising campaigns in history. By using humor and storytelling, their ads captured attention, evoked positive emotions, and reinforced brand recognition.


Their tagline, roughly translated as “Gotta call Apeldoorn,” became part of Dutch culture, symbolizing unexpected mishaps requiring insurance coverage. Over the years, the campaign built both brand awareness and consumer affection, making Centraal Beheer a market leader.


Their approach underscores the principles of fame, emotional resonance, and long-term branding—all critical factors in advertising success.



Final Thoughts


Advertising is not about merely listing product features. It’s about creating memorable, emotionally engaging brand experiences. The best campaigns make brands famous, forge lasting mental connections, and stay consistent yet fresh over time.


By understanding how advertising truly works, marketers can create more effective, high-impact campaigns that drive both short-term sales and long-term brand growth.

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