Local Advertising Decision Makers' Perceptions of Media Effectiveness and Substitutability

Reid, Leonard N.; King, Karen Whitehill; Martin, Hugh J.; Soh, Hyeonjin

doi:10.1207/s15327736me1801_3

Cited by 14 publications

(8 citation statements)

References 15 publications

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“…Not surprisingly, there is evidence in the literature that suggests that the main effect of national advertising is positive (e.g., Anderson and Simester 2004; Dekimpe and Hanssens 1999; Hirschey 1982). Likewise, although evidence is less rampant, extant literature has also indicated that regional advertising boosts firm performance (e.g., Nowak, Cameron, and Krugman 1993; Reid et al 2005). Finally, there is also sufficient evidence that online advertising positively influences firm performance (e.g., Agarwal, Hosanagar, and Smith 2011; Agarwal, Athey, and Yang 2009).…”

Section: Conceptual Backgroundmentioning

confidence: 99%

Relating Online, Regional, and National Advertising to Firm Value

Sridhar

Germann

Kang

et al. 2016

Journal of Marketing

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Firms spend billions of dollars on advertising every year but remain uncertain about allocation across various advertising vehicles. Allocation decisions are even more complex as online advertising has proliferated and consumers’ media usage patterns have become more fragmented. To determine advertising effectiveness, the authors group firms’ advertising vehicle choices into three theoretically grounded and empirically verified smaller subsets: national, regional, and online advertising. Subsequently, they assess how the three advertising vehicles independently and jointly affect firm performance. Using 12 years of data covering 662 manufacturing firms, the authors find that while national, regional, and online advertising each have a positive and significant main effect on firm performance, each advertising vehicle weakens the effectiveness of the respective other two advertising vehicles (e.g., a 1% increase in online advertising increases firm performance by .32% but also decreases national [.15%] and regional [.03%] advertising effectiveness). A battery of robustness checks triangulates this result. Although all three media vehicles contribute to net increases in performance, the authors discuss the need to strategically integrate them to maximize combined effectiveness.

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Section: Conceptual Backgroundmentioning

confidence: 99%

Relating Online, Regional, and National Advertising to Firm Value

Sridhar

Germann

Kang

et al. 2016

Journal of Marketing

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“…Therefore, we assumed that magazines are a cost-effective medium that can be used to plan marketing strategies. Reid et al (2005) examined local decision makers' perceptions of media effectiveness and substitutability and found that, compared to other media, daily newspapers and the radio are most effective locally. They also found that media compatibility is restricted to particular types of media such as newspapers and radio.…”

Section: Introductionmentioning

confidence: 99%

An analysis of different types of advertising media and their influence on consumer preferences and purchase intentions for digital cameras

Ahn

Lee²,

Lee

et al. 2012

Journal of Global Scholars of Marketing Science

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This study analyzes consumer preferences for different types of advertising media: print media, the Internet, salespersons, and a new type of media 1 -an innovative information delivery device based on Microsoft's multi-touch screen and a single-touch sensor bar. We chose three kinds of digital cameras for our study and analyzed how different types of advertising media influence purchase intention. We used mixed logit model and multinomial logit-OLS two-stage estimation method for this analysis. Our results show that the Internet had the highest influence on consumers' purchase intentions. The new type of media had the second highest influence. This study reveals that advertisements which use new types of media can positively influence consumers. These findings can inspire companies to use new types of advertising media to develop their advertising strategy portfolios. This proposed model is applicable to other products and types of advertising media in order to analyze consumer preferences and purchase intentions.

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“…Media content is highly dependent on the cultural context. For instance, only a fraction of news content can be reused in other markets since most news broadcasts are relevant only in a certain market and recipients, as well as advertisers, are interested in local, regional or national content (Reid et al 2005;Aldridge 2003). Entertainment content generally travels more easily, although cultural and linguistic borders exist as well.…”

Section: Internationalizationmentioning

confidence: 99%