The Pursuit of Knowing Instead of Assuming -A study of Value-Based Advertising

Abstract

ABSTRACT: A traditional advertising deal is paid for in advance and the price is typically based on space and reach. Value-based advertising, as the word implies, means that the advertiser, instead of paying in advance, is paying for the actual value the ad generates. This study illuminates what differentiates value-based advertising deals from traditional advertising. Our findings shows that the most significant differences are the changed relationship between the media company and the advertiser, the media company‟s ability to attract new advertisers, advertisers‟ willingness to pay more and that value-based advertising is considered complex in many aspects. Moreover this study explains what is required to develop value-based advertising further. Those requirements are that media companies have to increase advertisers‟ knowledge, obtain reference cases and approach senior management instead of marketing managers. If these areas are developed in an accurate way, value-based advertising deals will in the near future become a vital part of advertising.