TV Advertising Effectiveness and Profitability: Generalizable Results From 288 Brands

  title={TV Advertising Effectiveness and Profitability: Generalizable Results From 288 Brands},
  author={Bradley T. Shapiro and G{\"u}nter J. Hitsch and Anna E. Tuchman},
We estimate the distribution of television advertising elasticities and the distribution of the advertising return on investment (ROI) for a large number of products in many categories. Our results reveal substantially smaller advertising elasticities compared to the results documented in the literature, as well as a sizable percentage of statistically insignificant or negative estimates. The results are robust to functional form assumptions and are not driven by insufficient statistical power… 

Figures and Tables from this paper

Public and Private Provision of Information in Market-Based Public Programs: Evidence from Advertising in Health Insurance Marketplaces
This paper studies the effect of provision of information by the government and private firms through marketing activities in the Affordable Care Act health insurance marketplace. Using detailed TV
Disentangling the Effects of Ad Tone on Voter Turnout and Candidate Choice in Presidential Elections
We develop an approach to disentangle the effect of positive and negative advertising on primary and secondary demand. We study these ad tone effects in the context of political advertising using a
How Viewer Tuning, Presence and Attention Respond to Ad Content and Predict Brand Search Lift*
New technology measures TV viewer tuning, presence and attention, enabling the first distinctions between TV ad viewability and actual ad viewing. We compare new and traditional viewing metrics,
Naive Analytics Equilibrium
We study interactions with uncertainty about demand sensitivity. In our solution concept (1) firms choose seemingly-optimal strategies given the level of sophistication of their data analytics, and


Political Advertising and Election Results
We study the persuasive effects of political advertising. Our empirical strategy exploits FCC regulations that result in plausibly exogenous variation in the number of impressions across the borders
Consumer Heterogeneity and Paid Search Effectiveness: A Large Scale Field Experiment
Internet advertising has been the fastest growing advertising channel in recent years, with paid search ads comprising the bulk of this revenue. We present results from a series of large‐scale field
The Unfavorable Economics of Measuring the Returns to Advertising
Twenty-five large field experiments with major U.S. retailers and brokerages, most reaching millions of customers and collectively representing $2.8 million in digital advertising expenditure, reveal
How Well Does Advertising Work? Generalizations from Meta-Analysis of Brand Advertising Elasticities
The authors conduct a meta-analysis of 751 short-term and 402 long-term direct-to-consumer brand advertising elasticities estimated in 56 studies published between 1960 and 2008. The study finds
Determinants of Advertising Effectiveness: The Development of an International Advertising Elasticity Database and a Meta-Analysis
Increasing demand for marketing accountability requires an efficient allocation of marketing expenditures. Managers who know the elasticity of their marketing instruments can allocate their budgets
How Advertising Affects Sales: Meta-Analysis of Econometric Results
The authors attempt to assess what has been learned from econometric models about the effect of advertising on sales. Short-term and long-term advertising response as well as model fit are analyzed
Legacy discounts in the market for national television advertising∗
Advertising is an important input in the production of many final products sold to consumers, and national television ads still command the majority of ad dollars spent in the U.S. Yet, firms face
Ask Your Doctor? Direct-to-Consumer Advertising of Pharmaceuticals
We measure the impact of direct-to-consumer television advertising (DTCA) by drug manufacturers. Our identification strategy exploits shocks to local advertising markets generated by idiosyncrasies
Advertising Spillovers: Evidence from Online Field Experiments and Implications for Returns on Advertising
The author analyzes the impact of online ads on the advertiser's competitors, using data from randomized field experiments on a restaurant-search website. He finds that ads increase the chances of
An Empirical Model of Advertising Dynamics
This paper develops a model of dynamic advertising competition, and applies it to the problem of optimal advertising scheduling through time. In many industries we observe advertising “pulsing”,