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Internet Adoption and Advertising Expenditures on Traditional Media: An Empirical Analysis Using a Panel of Countries

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  • Alejandro Zentner

Abstract

The Internet can affect advertising expenditures through various channels. This paper quantifies the relationships between Internet adoption and changes in advertising expenditures on traditional offline media types. I use a panel of 11 years of data at the country level that contains information on advertising expenditures by medium and Internet penetration for more than 80 countries. I find that increases in Internet penetration are negatively correlated with changes in advertising expenditures on newspapers, magazines, and television, but I do not find conclusive results for the correlation between Internet adoption and changes in advertising expenditures on radio.

Suggested Citation

  • Alejandro Zentner, 2012. "Internet Adoption and Advertising Expenditures on Traditional Media: An Empirical Analysis Using a Panel of Countries," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(4), pages 913-926, December.
    • Handle: RePEc:bla:jemstr:v:21:y:2012:i:4:p:913-926
    DOI: j.1530-9134.2012.00355.x
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    References listed on IDEAS

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    Cited by:

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    2. Shrihari Sridhar & Srinivasaraghavan Sriram, 2015. "Is online newspaper advertising cannibalizing print advertising?," Quantitative Marketing and Economics (QME), Springer, vol. 13(4), pages 283-318, December.
    3. Jacqmin, Julien, 2019. "Providing MOOCs: A FUN way to enroll students?," Information Economics and Policy, Elsevier, vol. 48(C), pages 32-39.
    4. Zeynep Bayazit & Elif Guneren Genc, 2019. "An Analysis of Reciprocal Influence between Advertising Expenditures and Gross Domestic Product," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 41-47.
    5. Douglas Chiguvi, 2022. "Effectiveness of traditional and digital advertising platforms for the marketing of tourism," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(10), pages 01-12, December.
    6. Ji, Sung Wook & Choi, Young-jun & Ryu, Min Ho, 2016. "The economic effects of domestic search engines on the development of the online advertising market," Telecommunications Policy, Elsevier, vol. 40(10), pages 982-995.
    7. Cho, Daegon & Smith, Michael D. & Zentner, Alejandro, 2016. "Internet adoption and the survival of print newspapers: A country-level examination," Information Economics and Policy, Elsevier, vol. 37(C), pages 13-19.
    8. Elvis Madondo & Douglas Chiguvi & Ruramayi Tadu, 2019. "Assessment of the Effectiveness of Traditional Media for the Promotion of Tourism in This Digital Age in KwaZulu-Natal South Africa," Business and Management Studies, Redfame publishing, vol. 5(4), pages 49-61, December.
    9. Shrihari Sridhar & Srinivasaraghavan Sriram, 2015. "Is online newspaper advertising cannibalizing print advertising?," Quantitative Marketing and Economics (QME), Springer, vol. 13(4), pages 283-318, December.
    10. Somnath Chakrabarti, 2017. "An Exploratory Study for Understanding the Drivers of Display Advertising Spend in USA," Proceedings of Business and Management Conferences 5607601, International Institute of Social and Economic Sciences.
    11. Ammar Ikhwan Yahaya & Anuar Nawawi & Ahmad Saiful Azlin Puteh Salin, 2017. "The Influence of Advertisement on Media Users: Empirical Evidence from Three Generational Differences in Malaysia," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(5), pages 258-275, May.

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