Comparing the Relative Effectiveness of Advertising Channels: A Case Study of a Multimedia Blitz Campaign

Tracey Dagger, Monash University
Peter Danaher, Melbourne Business School

In this study we develop an inexpensive method that helps firms to assess the relative effectiveness of multiple advertising media. Specifically, we use a firm’s loyalty program database to capture media exposure, via an online media survey, for all the media in which they advertise. In turn, the exposure data are matched with the purchase history for these same individuals, thereby creating single-source data. We illustrate our method for a large retailer that undertook a short-term promotional sale by advertising in television, radio, newspaper, magazines, online display ads, sponsored search, social media, catalogs, direct mail and email. In this case, 7 of the 10 media significantly influence purchase outcomes. Finally, we demonstrate how to use our advertising response model to determine the optimal budget allocation across each advertising media channel.

 

Danaher Peter J. and Dagger,Tracey S. (2013), Comparing the Relative Effectiveness of Advertising Channels: a Case Study of a Multimedia Blitz Campaign, Journal of Marketing Research, 50, 4, (August), 517-534