Complement or substitute? The internet as an advertising channel, evidence on advertisers on the Italian market, 2005-2009
AbstractDuring the last decade the internet has been the fastest growing segment in advertising. Exploiting Nielsen data, we analyze the advertising pattern displayed by the population of organizations (i.e. companies, non-profit institutions and public entities) that were active on the Italian national market during the period 2005-2009. Some reduced form evidence shows that - during this time period - smaller firms increased their ads investment on newspapers, magazines cinema comparatively more than larger firms. Radio and the internet display an opposite pattern, whereas are larger firms increasing their expenses more than smaller firms. In the lack of firmspecific output data, we also estimate a homothetic advertising cost function for different subsets of the sample. We find that media segments are (loose) substitutes, in that the estimated cross-price elasticities are positive but decidedly less than one. --
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Bibliographic InfoPaper provided by International Telecommunications Society (ITS) in its series 24th European Regional ITS Conference, Florence 2013 with number 88464.
Date of creation: 2013
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Web page: http://www.itseurope.org/
Advertising; Internet; Media Substitution;
Find related papers by JEL classification:
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-01-10 (All new papers)
- NEP-COM-2014-01-10 (Industrial Competition)
- NEP-CUL-2014-01-10 (Cultural Economics)
- NEP-MKT-2014-01-10 (Marketing)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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