This newsletter comes from the hosts of The Marketing Architects, a research-first show answering your biggest marketing questions. Find us on Apple Podcasts or wherever you listen to podcasts!
This week, we're diving into marketing research that challenges traditional beliefs and offers fresh perspectives on consumer behavior and marketing effectiveness. Trust us, you won’t want to miss this.
—Elena
AI influencers have an average engagement rate of 3.6%.
Meanwhile, human influencers achieve only 1.3% engagement on average. However, AI influencers struggle to keep up with humans when it comes to converting this extra engagement into sales.
Here’s a closer look at some of the research:
1. The Law of Buyer Moderation
Research from the Ehrenberg-Bass Institute shows that over time, the average purchase frequency of customers decreases. Brands need to focus on attracting new customers instead of relying solely on loyalty programs.
2. Mere Exposure Effect
Documented by German and American psychologists, the mere exposure effect shows how familiarity can shape our preferences. This phenomenon was validated by psychologist Robert Zajonc in 1968, who found that people favor things they see more often because repeated exposure decreases uncertainty and enhances ease of recognition. This explains why consumers often prefer familiar products and brands.
3. How Share of Voice Correlates to Share of Market
Nielsen and System1 research shows a strong link between a brand’s share of voice and market share. A 10% increase in share of voice can lead to a 0.5% increase in market share, emphasizing the need for investing in growing share of voice.
4. Market Research with LLMs
Research from UC Berkeley, University of Alberta, and Columbia University reveals that Large Language Models (LLMs) can replicate human responses with 75 to 85% accuracy, indicating their potential to revolutionize market research. These models speed up research and cut costs by generating consumer insights from a wide range of data.
"Three marketing experts on how to achieve ‘effective share of voice’”
In this article, experts from Ebiquity, System1, and Boots share the secrets behind share of voice and how it’s linked with share of market. Read the article.
Ignore research at your peril.
“Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals.”
—David Ogilvy, Founder of Ogilvy & Mather and “Father of Advertising”
