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Advertising media strategies in the film industry

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  • Caroline Elliott
  • Rob Simmons

Abstract

The primary aim of this article is to estimate the multiple determinants of film advertising expenditures in four important media, namely television, press, outdoor and radio, in the UK. First, television advertising, the leading film advertising medium, is examined as part of a system of equations, capturing the interdependences between advertising, the number of screens on which films are initially shown and box office revenues. Then a reduced form model is put forward to reveal the determinants of film advertising in the four media. While major distribution companies have different preferences for the use of the alternative advertising media, results highlight the importance of quality signals, such as critical reviews, in determining advertising expenditures in the film industry. Moreover, advertising expenditures can themselves be considered to offer potential cinema goers signals of film quality.

Suggested Citation

  • Caroline Elliott & Rob Simmons, 2011. "Advertising media strategies in the film industry," Applied Economics, Taylor & Francis Journals, vol. 43(29), pages 4461-4468.
  • Handle: RePEc:taf:applec:v:43:y:2011:i:29:p:4461-4468
    DOI: 10.1080/00036846.2010.491466
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    Cited by:

    1. Caroline Elliott & Rob Simmons, 2008. "Determinants of UK Box Office Success: The Impact of Quality Signals," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 33(2), pages 93-111, September.

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