Media Substitution in Advertising: A Spirited Case Study
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.
|Date of creation:||Sep 2006|
|Date of revision:|
|Contact details of provider:|| Postal: P O Box 2118, Huntsville, TX 77341-2118|
Web page: http://www.shsu.edu/~eco_www/
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.:
- 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.
- 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 647-56, November.
- Henry Saffer, 2000.
"Alcohol Consumption and Alcohol Advertising Bans,"
NBER Working Papers
7758, National Bureau of Economic Research, Inc.
- Hirofumi Uzawa, 1962. "Production Functions with Constant Elasticities of Substitution," Review of Economic Studies, Oxford University Press, vol. 29(4), pages 291-299.
- Henry Saffer, 1989.
"Alcohol Advertising Bans and Alcohol Abuse: An International Perspective,"
NBER Working Papers
3052, National Bureau of Economic Research, Inc.
- Saffer, Henry, 1991. "Alcohol advertising bans and alcohol abuse: An international perspective," Journal of Health Economics, Elsevier, vol. 10(1), pages 65-79, May.
- Jon Nelson, 2005. "Beer Advertising and Marketing Update: Structure, Conduct, and Social Costs," Review of Industrial Organization, Springer, vol. 26(3), pages 269-306, December.
- 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.
- 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, December.
- Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, November.
- Henry Saffer, 2000.
"Alcohol Advertising And Motor Vehicle Fatalities,"
The Review of Economics and Statistics,
MIT Press, vol. 79(3), pages 431-442, August.
- Jon Nelson, 2003. "Advertising Bans, Monopoly, and Alcohol Demand: Testing for Substitution Effects using State Panel Data," Review of Industrial Organization, Springer, vol. 22(1), pages 1-25, February.
- 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.
- 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 937-57, Sept.-Nov.
- 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.
- 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.
- Alvin Silk & Lisa Klein & Ernst Berndt, 2002. "Intermedia Substitutability and Market Demand by National Advertisers," Review of Industrial Organization, Springer, vol. 20(4), pages 323-348, June.
- Robert P. Leone, 1995. "Generalizing What Is Known About Temporal Aggregation and Advertising Carryover," Marketing Science, INFORMS, vol. 14(3_supplem), pages G141-G150.
When requesting a correction, please mention this item's handle: RePEc:shs:wpaper:0606. 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: (Christian Raschke)
If references are entirely missing, you can add them using this form.