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Share price reactions to advertising announcements and broadcast of media events

Author

Listed:
  • Greg Filbeck

    (Penn State Erie, The Behrend College, PA, USA)

  • Xin Zhao

    (Penn State Erie, The Behrend College, PA, USA)

  • Daniel Tompkins

    (Niagara University, NY, USA)

  • Peggy Chong

    (Niagara University, NY, USA)

Abstract

Over the last two decades, marketers have gravitated toward placing their ads in specific television programs such as the Super Bowl, Academy Awards, and the last episodes of sitcoms. While anecdotal evidence of positive outcomes in the form of increased sales, phone inquiries, and hits on the web sites of advertisers, there has not been any credible measurement of investor returns in this expensive strategy. We find that firms advertising for the first time, with greater advertising expenditures relative to sales, and with more effective|creative campaigns fare better in terms of the market reaction to their campaigns. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Greg Filbeck & Xin Zhao & Daniel Tompkins & Peggy Chong, 2009. "Share price reactions to advertising announcements and broadcast of media events," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 253-264.
  • Handle: RePEc:wly:mgtdec:v:30:y:2009:i:4:p:253-264
    DOI: 10.1002/mde.1450
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    References listed on IDEAS

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    Cited by:

    1. Soni, Mayank Jyotsna, 2013. "Advertisement Placement in TV Programs: Different Roles of ELM and Mood Protection Mechanism," IIMA Working Papers WP2013-03-02, Indian Institute of Management Ahmedabad, Research and Publication Department.

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