IDEAS home Printed from https://ideas.repec.org/a/eee/indorg/v26y2008i1p308-326.html
   My bibliography  Save this article

Media substitution in advertising: A spirited case study

Author

Listed:
  • Frank, Mark W.

Abstract

This paper uses an unusually rich sample of liquor brands in the U.S. over the period 1994 to 2004 to test substitutability of advertising media. The liquor industry in the U.S. has experienced a substantial increase in case sales and advertising expenditures since the mid-1990s, raising numerous public policy concerns. Moreover, the mix of advertising media used by liquor brands also changed substantially following the industry’s decision in 1996 to begin using radio and television media. We find that the advertising media used by liquor firms are highly substitutable, meaning that partial media bans, such as a ban on television advertising, would prove ineffective in reducing liquor case sales.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Frank, Mark W., 2008. "Media substitution in advertising: A spirited case study," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 308-326, January.
  • Handle: RePEc:eee:indorg:v:26:y:2008:i:1:p:308-326
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167-7187(07)00003-3
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jon Nelson, 2005. "Beer Advertising and Marketing Update: Structure, Conduct, and Social Costs," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 26(3), pages 269-306, December.
    2. Victor J. Tremblay & Carol Horton Tremblay, 2005. "The US Brewing Industry: Data and Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262201518, January.
    3. Rajeev Goel & Michael Nelson, 2005. "Tobacco policy and tobacco use: differences across tobacco types, gender and age," Applied Economics, Taylor & Francis Journals, vol. 37(7), pages 765-771.
    4. Henry Saffer & Dhaval Dave, 2002. "Alcohol consumption and alcohol advertising bans," Applied Economics, Taylor & Francis Journals, vol. 34(11), pages 1325-1334.
    5. Jon Nelson, 2003. "Advertising Bans, Monopoly, and Alcohol Demand: Testing for Substitution Effects using State Panel Data," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(1), pages 1-25, February.
    6. Nelson, Jon P. & Young, Douglas J., 2001. "Do Advertising Bans Work? An International Comparison," Working Papers 6-01-1, Pennsylvania State University, Department of Economics.
    7. Henry Saffer, 2000. "Alcohol Advertising And Motor Vehicle Fatalities," The Review of Economics and Statistics, MIT Press, vol. 79(3), pages 431-442, August.
    8. 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.
    9. Hirofumi Uzawa, 1962. "Production Functions with Constant Elasticities of Substitution," Review of Economic Studies, Oxford University Press, vol. 29(4), pages 291-299.
    10. Anderson, Richard G & Thursby, Jerry G, 1986. "Confidence Intervals for Elasticity Estimators in Translog Models," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 647-656, November.
    11. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, April.
    12. Robert P. Leone, 1995. "Generalizing What Is Known About Temporal Aggregation and Advertising Carryover," Marketing Science, INFORMS, vol. 14(3_supplem), pages 141-150.
    13. Berndt, Ernst R & Savin, N Eugene, 1975. "Estimation and Hypothesis Testing in Singular Equation Systems with Autoregressive Disturbances," Econometrica, Econometric Society, vol. 43(5-6), pages 937-957, Sept.-Nov.
    14. Saffer, Henry, 1991. "Alcohol advertising bans and alcohol abuse: An international perspective," Journal of Health Economics, Elsevier, vol. 10(1), pages 65-79, May.
    15. Saffer, Henry & Chaloupka, Frank, 2000. "The effect of tobacco advertising bans on tobacco consumption," Journal of Health Economics, Elsevier, vol. 19(6), pages 1117-1137, November.
    16. Alvin Silk & Lisa Klein & Ernst Berndt, 2002. "Intermedia Substitutability and Market Demand by National Advertisers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(4), pages 323-348, June.
    17. repec:mes:challe:v:31:y:1988:i:4:p:56-58 is not listed on IDEAS
    18. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tanja Greiner & Marco Sahm, 2011. "How Effective are Advertising Bans? On the Demand for Quality in Two-Sided Media Markets," CESifo Working Paper Series 3524, CESifo Group Munich.
    2. He, Xi & Lopez, Rigoberto A. & Liu, Yizao, 2015. "Substitution between Online and Offline Advertising: Evidence from the Carbonated Soft Drink Industry," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205212, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    3. Peter Scott & James Walker, 2010. "Advertising, promotion, and the competitive advantage of interwar British department stores," Economic History Review, Economic History Society, vol. 63(4), pages 1105-1128, November.
    4. Sahm, Marco & Greiner, Tanja, 2016. "How Effective Are Advertising Bans? On the Demand for Quality in Two-Sided Media Markets," Annual Conference 2016 (Augsburg): Demographic Change 145724, Verein für Socialpolitik / German Economic Association.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:indorg:v:26:y:2008:i:1:p:308-326. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu) or (). General contact details of provider: http://www.elsevier.com/locate/inca/505551 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.