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Alcohol Advertising In Magazines: Do Beer, Wine, And Spirits Ads Target Youth?

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  • JON P. NELSON

Abstract

In 2003, the alcohol beverage industry spent more than $1.6 billion on advertising, including $394 million on ads in magazines. Critics allege that these activities target adolescents. This article examines count data for alcohol ads placed in 28 magazines in 2001–03. Specifying a demand function for advertising space, regressions are estimated that are conditioned on magazine characteristics and readership demographics, including the percent of youth in the audience. The explanatory variables include real prices of advertisements and audience size. Results indicate significant effects for price, audience size, and adult demographics, but fail to support claims that advertisers target youth. (JEL L82, L66, M37)

Suggested Citation

  • Jon P. Nelson, 2006. "Alcohol Advertising In Magazines: Do Beer, Wine, And Spirits Ads Target Youth?," Contemporary Economic Policy, Western Economic Association International, vol. 24(3), pages 357-369, July.
    • Handle: RePEc:bla:coecpo:v:24:y:2006:i:3:p:357-369
    DOI: 10.1093/cep/byj036
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    References listed on IDEAS

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    1. Fare, Rolf & Grosskopf, Shawna & Seldon, Barry J. & Tremblay, Victor J., 2004. "Advertising efficiency and the choice of media mix: a case of beer," International Journal of Industrial Organization, Elsevier, vol. 22(4), pages 503-522, April.
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    3. Seldon, Barry J. & Jewell, R. Todd & O'Brien, Daniel M., 2000. "Media substitution and economies of scale in advertising," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1153-1180, December.
    4. Depken II, Craig A., 2004. "Audience characteristics and the price of advertising in a circulation industry: evidence from US magazines," Information Economics and Policy, Elsevier, vol. 16(2), pages 179-196, June.
    5. Ehrlich, Isaac & Fisher, Lawrence, 1982. "The Derived Demand for Advertising: A Theoretical and Empirical Investigation," American Economic Review, American Economic Association, vol. 72(3), pages 366-388, June.
    6. Seldon, Barry J. & Jung, Chulho, 1993. "Derived demand for advertising messages and substitutability among the media," The Quarterly Review of Economics and Finance, Elsevier, vol. 33(1), pages 71-86.
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    Cited by:

    1. Michael Siegel & Charles King & Joshua Ostroff & Craig Ross & Karen Dixon & David H. Jernigan, 2008. "Comment—Alcohol Advertising In Magazines And Youth Readership: Are Youths Disproportionately Exposed?," Contemporary Economic Policy, Western Economic Association International, vol. 26(3), pages 482-492, July.
    2. Jon P. Nelson, 2008. "Reply To Siegel Et Al.: Alcohol Advertising In Magazines And Disproportionate Exposure," Contemporary Economic Policy, Western Economic Association International, vol. 26(3), pages 493-504, July.

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    More about this item

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

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