Getting into Your Head(Ache): The Information Content of Advertising in the Over-the-Counter Analgesics Industry
We study how much information firms include in their advertisements and what determines their choices. We use data from advertisement videos from the US OTC analgesics industry between 2001 and 2005 to measure information content in ads. For each video we code the number of cues it contains. The correlation between any two cues is rarely large, suggesting that each cue provides different information. We find: i) brands with inherently better characteristics (e.g. faster relief) transmit more information; ii) comparative advertisements contain significantly more information than self-promotion ads; iii) market share is negatively associated with the amount of information content; iv) a higher market share of the generic version of a brand is also associated with less information by the brand. Not controlling for endogeneity of market share and the decision to use comparative advertising would lead to significant estimation bias. Result (iii) is consistent with recent theoretical work that larger firms disclose less information, while result (iv) indicates the likely presence of information spillovers from brands to their generic counterparts.
|Date of creation:||10 Aug 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:dau:papers:123456789/12478 is not listed on IDEAS
- Simon P. Anderson & Federico Ciliberto & Jura Liaukonyte & Régis Renault, 2015.
"Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry,"
CESifo Working Paper Series
5418, CESifo Group Munich.
- Anderson, Simon P & Ciliberto, Federico & Liaukonyte, Jura & Renault, Régis, 2012. "Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry," CEPR Discussion Papers 8988, C.E.P.R. Discussion Papers.
- Anderson, Simon & Ciliberto, Federico & Liaukonyte, Jura & Renault, Regis, 2012. "Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry," MPRA Paper 38626, University Library of Munich, Germany.
- Joshua D. Angrist, 2000.
"Estimation of Limited-Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice,"
NBER Technical Working Papers
0248, National Bureau of Economic Research, Inc.
- Angrist, Joshua D, 2001. "Estimations of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(1), pages 2-16, January.
- Joshua Angrist, 1999. "Estimation of Limited-Dependent Variable Models with Dummy Endogenous Regressors: Simple Strategies for Empirical Practice," Working papers 99-31, Massachusetts Institute of Technology (MIT), Department of Economics.
- Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
- Ganesh Iyer & David Soberman & J. Miguel Villas-Boas, 2005. "The Targeting of Advertising," Marketing Science, INFORMS, vol. 24(3), pages 461-476, May.
- Simon P. Anderson & Régis Renault, 2009.
"Comparative advertising: disclosing horizontal match information,"
RAND Journal of Economics,
RAND Corporation, vol. 40(3), pages 558-581.
- Simon P. ANDERSON & Régis RENAULT, 2008. "Comparative Advertising: disclosing horizontal match information," THEMA Working Papers 2008-29, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
- Richard Blundell & James Powell, 2001. "Endogeneity in nonparametric and semiparametric regression models," CeMMAP working papers CWP09/01, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Jeffrey M. Wooldridge, 2001.
"Econometric Analysis of Cross Section and Panel Data,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262232197, March.
- Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, March.
- Bharat Anand & Ron Shachar, 2009. "Targeted advertising as a signal," Quantitative Marketing and Economics (QME), Springer, vol. 7(3), pages 237-266, September.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24916. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.