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Generic Advertising Wearout

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  • Kinnucan, Henry W.
  • Chang, Hui-Shung (Christie)
  • Venkateswaran, Meenakshi

Abstract

Advertising wearout, defined as the declining effectiveness of a commercial or campaign associated with increased exposure, is examined from a generic advertising perspective. Generic advertising campaigns of the type typically undertaken by agricultural commodity groups differ from branded advertising in that the former seek to increase aggregate demand for a product category (e.g., beef, milk, wool) rather than the market share of a particular brand within a category. A major hypothesis addressed in this research is whether generic campaigns are subject to the same generation-satiation-decay cycles found for the more typical brand advertising campaigns. The hypothesis is examined by estimating a time-varying parameter model using data from the first fourteen years of an advertising campaign for fluid milk. Results suggest that the cycles predicted by wearout theory do exist in the case of specific generic thematic appeals. However, other phenomenon, such as a "learning curve" on the part of campaign managers, may be more important in explaining overall changes in effectiveness of generic advertising campaigns over time.

Suggested Citation

  • Kinnucan, Henry W. & Chang, Hui-Shung (Christie) & Venkateswaran, Meenakshi, 1993. "Generic Advertising Wearout," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(03), pages 1-15, December.
    • Handle: RePEc:ags:remaae:9620
    DOI: 10.22004/ag.econ.9620
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    References listed on IDEAS

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    1. Henry Kinnucan & Olan D. Forker, 1986. "Seasonality in the Consumer Response to Milk Advertising with Implications for Milk Promotion Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 562-571.
    2. Kinnucan, Henry W., 1986. "Demographic Versus Media Advertising Effects On Milk Demand: The Case Of The New York City Market," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(1), pages 1-9, April.
    3. Eithan Hochman & Uri Regev & Ronald W. Ward, 1974. "Optimal Advertising Signals in the Florida Citrus Industry: A Research Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(4), pages 697-705.
    4. Donald J. Liu & Olan D. Forker, 1990. "Optimal Control of Generic Fluid Milk Advertising Expenditures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(4), pages 1047-1055.
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    9. Meenakshi Venkateswaran & Henry W. Kinnucan, 1990. "Evaluating Fluid Milk Advertising in Ontario: The Importance of Functional Form," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(3), pages 471-488, November.
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