Expenditure trends in US advertising : long-term effects and structural changes with new media introductions
AbstractHistorically US Media channels have competed to attract advertising expenditure from marketing. This has been a fierce battle, where, every few years, incumbents have been shattered by the introduction of a new media such as TV, Yellow Pages, Cable and the Internet. In this paper we will analyze and discuss the dynamic trend in advertising expenditure for ten different advertising media channels in the U.S., by estimating the long-term equilibrium between these time series, and their equilibrium cross-elasticities. We will also analyze how they are related to the business cycle, both at the aggregated level and specifically for each media. To this end, it is crucial to consider simultaneously the impact of new media introductions over the incumbents, estimating the potential effects of structural changes. Both, the introduction effects and the long-term equilibrium relationship between two media can be very different. In particular, we will study the influence of the Internet.
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Bibliographic InfoPaper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number wb121506.
Date of creation: Jun 2012
Date of revision: Jul 2013
Advertising Expenditure; Time series; Media; Structural breaks;
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