Relating Online, Regional, and National Advertising to Firm Value

Abstract

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.

New vistas for marketing strategy: digital, data-rich, and developing market (D3) environments

“…Finally, research has also focused on providing guidance on the correct amount of digital spending required to maximize firm outcomes. Sridhar et al (2016) find that while every one of national, regional, and online advertising have a positive and significant main effect on firm performance, each advertising vehicle weakens the effectiveness of the other two advertising vehicles respectively. Thus, all three media vehicles contribute to net increases in performance, but need to be strategically integrated for them to maximize combined effectiveness.…”

A Relação Entre Investimento Em Propaganda E O Valor Da Firma: Uma Revisão Sistemática E Uma Agenda De Pesquisa Para Futuros Estudos 1

“…televisão, rádio, patrocínio, entre outras), cada qual destinada a um objetivo específico e com capacidade de alcançar públicos distintos (SHIMP e ANDREWS, 2013). Cabe notar, no entanto, que distintas mídias podem afetar umas às outras, conforme identificam Sridhar et al (2016). Individualmente os três tipos de mídias por eles utilizados (online, nacional e regional) afetam positivamente no valor da firma, contudo, o aumento do efeito de uma acaba por canibalizar a eficácia das outras.…”

“…JOSHI e HANSSENS, 2010), outros apontam que o aumento de investimentos em determinadas ferramentas de comunicação leva ao declínio de eficácia de outras (e.g. SRIDHAR et al 2016). Há também casos onde a relação entre investimento em propaganda e o valor da firma não é observada (TULI, MUKHERJEE e DEKIMPE, 2012 7 ).…”

Pengaruh Social Media Marketing terhadap Brand Equity (Survei terhadap Anggota Fanpage Facebook Elevania)

“…Berdasarkan pada teori memiliki ekuitas merek yang kuat akan lebih banyak menghasilkan penjualan dari nilai produknya (Abedini Koshksaray, Franklin, & Heidarzadeh Hanzaee, 2015). Konsep Brand Equity masih menjadi perhatian penting penelitian dalam bidang pemasaran (Sridhar, Germann, Kang, & Grewal, 2016).…”