Advertising Bans and the Substitutability of Online and Offline Advertising
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SSRN-id1600221.pdf
Description
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1600221
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427.29 KB
Format
Adobe PDF
Checksum (MD5)
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Author(s)
Goldfarb, Avi
Tucker, Catherine Elizabeth
Date Issued
April 2011
Journal
Journal of Marketing Research
Publisher
American Marketing Association
Citation
Goldfarb, Avi, and Catherine Tucker. “Advertising Bans and the Substitutability of Online and Offline Advertising.” Journal of Marketing Research 48.2 (2011): 207-227.
Version
Author's final manuscript
Abstract
The authors examine whether the growth of the Internet has reduced the effectiveness of government regulation of advertising. They combine nonexperimental variation in local regulation of offline alcohol advertising with data from field tests that randomized exposure to online advertising for 275 different online advertising campaigns to 61,580 people. The results show that people are 8% less likely to say that they will purchase an alcoholic beverage in states that have alcohol advertising bans compared with states that do not. For consumers exposed to online advertising, this gap narrows to 3%. There are similar effects for four changes in local offline alcohol advertising restrictions when advertising effectiveness is observed both before and after the change. The effect of online advertising is disproportionately high for new products and for products with low awareness in places that have bans. This suggests that online advertising could reduce the effectiveness of attempts to regulate offline advertising channels because online advertising substitutes for (rather than complements) offline advertising.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike 3.0
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DOI of Published Version
https://doi.org/10.1509/jmkr.48.2.207
