Are Online and Offline Advertising Substitutes or Complements? Evidence from U.S. Food Industries

Q3 Business, Management and Accounting

Journal of Agricultural and Food Industrial Organization Pub Date : 2018-03-26 DOI:10.1515/jafio-2017-0031

Xi He, R. Lopez, Yizao Liu

引用次数: 4

Abstract

Abstract This article investigates the substitution between online advertising (ONLA) and offline advertising (OFFLA) as well as the impact of adopting ONLA on the total cost of advertising. We estimate an advertising translog cost function at the product-brand level, using monthly observations between 2005 and 2011 for each of three industries: beer, ready-to-eat cereals, and carbonated soft drinks. Although in all three industries we find that traditional media (TV and print) advertisements are close substitutes, we also find that ONLA is a complement to, rather than a substitute for, both TV and print media advertising. This may be explained by ONLA’s targeting younger market segments and acting as a reinforcement of TV and print media advertising exposure. Further results show that the adoption of ONLA has lowered the cost of advertising for achieving a sales target and that its complementarity effect is weakening over time.

查看原文本刊更多论文

线上和线下广告是替代还是互补?来自美国食品工业的证据

摘要本文研究了线上广告与线下广告的替代，以及采用线上广告对广告总成本的影响。我们利用2005年至2011年间对啤酒、即食谷物和碳酸软饮料这三个行业的月度观察，估算了产品品牌层面的广告超对数成本函数。虽然在这三个行业中，我们发现传统媒体(电视和平面)广告是紧密的替代品，但我们也发现ONLA是对电视和平面媒体广告的补充，而不是替代。这可以解释为ONLA瞄准了年轻的细分市场，并加强了电视和平面媒体广告的曝光。进一步的结果表明，采用ONLA降低了实现销售目标的广告成本，其互补效应随着时间的推移而减弱。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of Agricultural and Food Industrial Organization Business, Management and Accounting-Business, Management and Accounting (all)

CiteScore

3.10

自引率

0.00%

发文量

期刊介绍： The Journal of Agricultural & Food Industrial Organization (JAFIO) is a unique forum for empirical and theoretical research in industrial organization with a special focus on agricultural and food industries worldwide. As concentration, industrialization, and globalization continue to reshape horizontal and vertical relationships within the food supply chain, agricultural economists are revising both their views of traditional markets as well as their tools of analysis. At the core of this revision are strategic interactions between principals and agents, strategic interdependence between rival firms, and strategic trade policy between competing nations, all in a setting plagued by incomplete and/or imperfect information structures. Add to that biotechnology, electronic commerce, as well as the shift in focus from raw agricultural commodities to branded products, and the conclusion is that a "new" agricultural economics is needed for an increasingly complex "new" agriculture.