Three Ways Ad Agencies Use Market Research

Lab42 often conducts market research for startups trying to better define their target market or companies launching a new product. However, we have found that market research is also an invaluable tool for advertising and marketing agencies. It’s essential for ad agencies to know their clients’ consumers in order to deliver the most effective marketing campaign. Market research can be extremely helpful at every stage of a campaign’s development. Here are three specific examples:1. Understanding the consumer: Before designing a campaign, an agency should be aware of the target market’s needs, interests and perceptions of the client’s brand. What if a company’s product was being advertised as a high end, luxury item while the biggest purchasers of the product were moms trying to save money? Effective market research could easily help an agency identify this disconnect and position the product to better appeal to customer needs.

2. Ad Testing: Market research is also useful in testing ad designs before spending the money to launch an advertising campaign. If multiple ideas for a campaign have been developed, an online survey could gauge which ad has the most favorable response with the target audience. During the holiday season, Lab42 helped Marbles: The Brain Store, a brain games retailer, decide which billboard ad to place. The survey revealed a clear favorite among potential consumers, which allowed Marbles to confidently choose their holiday ad. As seen below, 65% of respondents preferred the billboard design with one tie.

3. Evaluating the Campaign: Yet another use of market research in the advertising process is to evaluate the success of a campaign after the fact. If the campaign was successful, market research can illuminate exactly how the ad made consumers feel good about the brand. If an ad campaign failed to increase sales, research is also necessary to understand why customers did not feel inspired to buy the product.These are just a few of the many ways that market research can be beneficial to advertising agencies. What do you think? Are there any other ways ad agencies could utilize market research?

Article by Sara

Hi, I'm Sara! I'm an intern for Lab42, working on PR, marketing and social media. As a contributor for the Lab42 blog, I get really excited whenever I come across a story about market research in the news. I also love to read about out-of-the-box social media campaigns. I'm currently a senior at Brandeis University in Waltham, Massachusetts majoring in Business and International Studies, and I spent last semester studying abroad in Copenhagen. Fun fact: In high school I was a coxswain on my school's rowing team.


  1. Philip Spencer says:

    would like to learn more about your services…

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