The Internalization of Advertising Services: An Inter-Industry Analysis

Q4 Business, Management and Accounting

Review of Marketing Science Pub Date : 2008-07-23 DOI:10.2139/ssrn.1171022

Sharon Horsky, Steven C. Michael, A. Silk

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引用次数: 8

Abstract

Abstract This study investigates the extent to which U.S. advertisers use in-house rather than independent advertising agencies and examines inter-industry variation in such internalization. Contrary to the widely-held impression that use of an in-house advertising agency is more the exception than the rule, we find that vertical integration of advertising services is much more widespread than has hitherto been appreciated. Drawing on concepts from research on scale economies and transaction costs, we develop a set of hypotheses about differences in the expected depth of internalization across industries. We test these hypotheses in cross sectional analyses of data covering 69 two digit SIC industries at two points in time, 1991 and 1999. In both years, approximately half of advertisers of all sizes operated an in-house agency. Across industries, we find that the likelihood of internalization of at least some advertising services decreases as the size of advertising outlays increase but increases as advertising intensity and technological intensity increase and is greater for “creative” industries.

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广告服务的内部化:一个跨行业分析

摘要本研究调查了美国广告商使用内部而非独立广告公司的程度，并研究了这种内部化的行业间差异。与广泛持有的印象相反，使用内部广告公司更多的是例外而不是规则，我们发现广告服务的垂直整合比迄今为止所认识到的要广泛得多。根据规模经济和交易成本研究的概念，我们提出了一系列关于不同行业内部化预期深度差异的假设。我们对1991年和1999年两个时间点的69个两位数SIC行业的数据进行了横断面分析，对这些假设进行了检验。在这两年中，大约一半的各种规模的广告客户都有内部代理机构。在各个行业中，我们发现至少一些广告服务的内部化可能性随着广告支出规模的增加而降低，但随着广告强度和技术强度的增加而增加，并且对于“创意”行业来说更大。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Marketing Science Business, Management and Accounting-Marketing

CiteScore

1.10

自引率

0.00%

发文量

期刊介绍： The Review of Marketing Science (ROMS) is a peer-reviewed electronic-only journal whose mission is twofold: wide and rapid dissemination of the latest research in marketing, and one-stop review of important marketing research across the field, past and present. Unlike most marketing journals, ROMS is able to publish peer-reviewed articles immediately thanks to its electronic format. Electronic publication is designed to ensure speedy publication. It works in a very novel and simple way. An issue of ROMS opens and then closes after a year. All papers accepted during the year are part of the issue, and appear as soon as they are accepted. Combined with the rapid peer review process, this makes for quick dissemination.