The impact of diversity and localization in advertising on creative performance: An experiment of AirConsole advertising on Facebook and Instagram

Diversity and inclusion are becoming increasingly demanded and important in advertising. Making ads more inclusive includes localization. This thesis tested the impact of diversity and localization on creative performance in advertising on Facebook and Instagram in Brazil and Finland.

Céline Maréchal, 2022

Bachelor Thesis, AirConsole / N-Dream AG
Betreuende Dozierende: Markus Rach
Keywords: advertising, marketing, performance marketing, diversity, localization, A/B test, Facebook, Instagram, Meta, Experiment, Brazil, Finland
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Brazil is very diverse, in comparison Finland is among the most homogenous countries in the world. The level of English knowledge in the countries is also different. In Brazil, only 5-12% of the population speak English whereas in Finland 70% of the population can easily take part in an English conversation. AirConsole has previously promoted the gaming platform through performance marketing on Meta (previously Facebook). Because of the restricted budget, the production of video ads was limited. Sufficient testing on the impact of racially diverse actors and localization was not done so far.
After casting diverse actors, ordering voice-overs, filming, and editing the experiment could start. The impact on creative performance was tested in a series of A/B tests on Meta Experiments and based on a 95% confidence interval. In the diversity test, 3 different advertisements with various levels of diversity were tested against each other. In the localization test, the native language advertisements were tested against the localized advertisements.
​​The hypothesis that diversity has a positive impact on creative performance in Brazil failed to be proven. The advertisement with 2 White people outperformed the others and it is indicated that diversity hurts creative performance. In Finland diversity increased creative performance if Finnish representation was present in the video ad. Like in Brazil a fully diverse advertisement hurt creative performance. Localization did not increase creative performance in both countries and the advertisements performed similarly. Nevertheless, the English advertisements had a slightly higher click-through rate in Brazil and Finland. Based on the statistics in this thesis a company with a limited budget is advised to produce an advertisement that is unlocalized and has some diverse representation but is not fully diverse. If the company had a large budget it is advised to test different advertisements and choose the winning ads for each country. In this case an unlocalized advertisement with 2 White people for Brazil and an unlocalized advertisement with a White and Black person for Finland.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit:
Vertraulichkeit: öffentlich
Art der Arbeit
Bachelor Thesis
AirConsole / N-Dream AG, Zürich
Autorinnen und Autoren
Céline Maréchal
Betreuende Dozierende
Markus Rach
Sprache der Arbeit
Business Administration International Management (Bachelor)
Standort Studiengang
advertising, marketing, performance marketing, diversity, localization, A/B test, Facebook, Instagram, Meta, Experiment, Brazil, Finland