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Optimal Media Allocation of Generic Fluid Milk Advertising Expenditures: The Case of New York State

Author

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  • Dong, Diansheng
  • Schmit, Todd M.
  • Kaiser, Harry M.

Abstract

A fixed-effects panel data demand model for five New York State markets is estimated to determine the differential impacts of generic fluid milk advertising by media type. Empirical results indicate that among the four media outlets, television advertising has the largest impact on per capita demand, followed by radio, outdoor, and print. Based on the estimated media-specific elasticities, media reallocation of advertising expenditures suggests that milk sales could increase significantly. The results indicate that cooperative media plan strategies developed between the New York regional advertising program and the national advertising programs would achieve the greatest benefits.

Suggested Citation

  • Dong, Diansheng & Schmit, Todd M. & Kaiser, Harry M., 2007. "Optimal Media Allocation of Generic Fluid Milk Advertising Expenditures: The Case of New York State," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(2), pages 253-266, October.
    • Handle: RePEc:cup:agrerw:v:36:y:2007:i:02:p:253-266_00
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    Cited by:

    1. Yuqing Zheng & Harry M. Kaiser, 2009. "Evaluating the effectiveness of generic advertising versus nonadvertising marketing activities on New York State milk markets," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 351-368.
    2. Capps, O., . "Targeted Advertising and Promotion Campaigns_A Case Study of the National Pork Board," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 38(01).

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