Designing a model for the effectiveness of television advertising with the approach of system dynamics

Aim and Introduction: Advertising is a powerful marketing tool that has the potential to change people's minds and behavior. That is why it is used for different purposes by big and small businesses. Additionally, advertising is a powerful tool used to convey information about products, services, or ideas to target audiences. Meanwhile, television is one of the most well-known advertising media. The purpose of this research is to provide a model to increase the effectiveness of television advertisements on viewers and to gain their satisfaction and loyalty. To achieve this goal, it is necessary to give special importance to the quality of advertisements and to make a double effort for this. For this reason, planning to increase the quality of advertising has attracted the attention of advertising managers more than before. Due to the complexity of the investigated problem, by assuming its parts independently and having a partial view of the problem, we will not be able to understand the complexity of the issue. This applied research aims to help advertising managers gain a comprehensive view of the performance of their system components by examining the relationships between the key and important variables of television advertisements and to be able to plan to improve the quality of advertisements and, as a result, make them more effective on television viewers.
Methodology: The current research is from the point of view of the applied goal, which used the system dynamics approach for simulation. This technique, which originated from systems thinking, has a dynamic view and feedback to systems. One of the most important advantages of using the system dynamics approach is paying attention to all system elements at the same time. Our spatial domain in this research is television. In this research, variables affecting the effectiveness of advertisements on viewers were extracted from the research literature using the opinions of experts and media experts. In the following, by using the data and historical information of the system, the relationships between the variables and their initial values were extracted. After that, it was tried to draw a cause-effect diagram for these variables and the relationships between them were drawn. Finally, we arrived at a comprehensive model for the effectiveness of television advertising. This model was implemented under the optimistic-pessimistic scenario to check how many per cent the amount of customer acquisition can increase in the standard mode. Therefore, the impact of implementing policies to increase the effectiveness of advertising in the future was analyzed and investigated.
Finding: The results of the model simulation indicate that the existence of a competitive atmosphere increases the level of advertising, and following this increase, the quality of advertising, satisfaction, and loyalty also increases, and thus more audiences are attracted.
Discussion and conclusion: In the marketing process, advertising is a vital part that will make businesses profitable by influencing the mind and behavior of consumers. Among them, television advertising is very important. Therefore, it is necessary to work for the effectiveness of television advertisements on viewers to increase their satisfaction and loyalty, and to increase the quality of these advertisements. For this purpose, the system dynamics approach was used, which models complex structures such as the relationships of the organization's key parameters. This modelling provides a complete understanding of system dynamics and its behavior to optimize performance. As it was said, the proper performance of advertisements is to increase profitability, while the availability of limited facilities is one of the problems of any organization, which both increases risk and decreases quality and consumer satisfaction. Therefore, it is tried to compensate these limitations to a great extent by applying appropriate policies by increasing the number of target audience. The important thing to pay attention to is the increase in the quality of advertisements, which increases satisfaction and naturally attracts more customers. For this purpose, the presented model that shows the behavior of the system is built under normal conditions. Then the performance of the system has been evaluated based on key criteria. This model was subjected to the optimistic-pessimistic scenario to check how much the amount of customer acquisition can be increased, and also these scenarios evaluated the effect of different components on increasing the amount of customer acquisition. It was observed that the increase and decrease of customer increase rate and customer decrease rate caused a significant change in the model level and the growth rate of the number of customers showed that the project is on the right track. This led to more monitoring of the project and attracting more consumer satisfaction, which would result in increased profitability and ultimately increased total revenues. As a result, if the proposed scenario is implemented, by increasing the level of quality and satisfaction, the profitability of the project will increase, and by implementing the results of the proposed strategies at the end of the study period, we will see an increase in cash flow.