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A Look at the Long-run Effectiveness of Multimedia Advertising and Its Implications for Budget Allocation Decisions

Published online by Cambridge University Press:  29 December 2005

DEMETRIOS VAKRATSAS  and
ZHENFENG MA
DEMETRIOS VAKRATSAS
Affiliation:
McGill University and Athens Laboratory of Business Administration (ALBA), demetrios.vakratsas@mcgill.ca
ZHENFENG MA
Affiliation:
McGill University, ma_zhenfeng@yahoo.com
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Abstract

This study examines the long-term effectiveness of multimedia advertising in a competitive setting and its implications for budget allocation decisions, using multivariate persistence methodology. Analysis of network TV, spot TV, and magazine advertising for the two major competitors in the U.S. SUV industry suggested that long-run advertising effectiveness differed considerably among media. These differences were attributed to the media lifespan, retrieval, and content of the message they convey. The authors propose that budget allocation decisions should consider the long-run effectiveness of the different media employed to increase the productivity of advertising campaigns. They also conduct a simulation experiment to further investigate long-run sales effects of alternative allocation strategy scenarios.

Type
Research Article
Information
Journal of Advertising Research , Volume 45 , Issue 2 , June 2005 , pp. 241 - 254
Copyright
© Copyright © 1960-2005, The ARF

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