Media Multiplexing Behavior: Implications for Targeting and Media Planning

Marketing Science, Forthcoming

63 Pages Posted: 29 Sep 2012 Last revised: 6 Oct 2012

See all articles by Chen Lin

Chen Lin

Michigan State University-Department of Marketing

Sriraman Venkataraman

University of North Carolina (UNC) at Chapel Hill - Marketing Area

Sandy D. Jap

Emory University - Department of Marketing

Date Written: September 28, 2012

Abstract

There is a growing trend among consumers to serially consume small, incomplete “chunks” of multiple media types – television, radio, Internet and print – within a short time period. We refer to this behavior as “media multiplexing” and note that key challenges for integrated marketing communications (IMC) media planners are (1) predicting which media or combination their target audience is likely to consume at any given time and (2) understanding potential substitutions and complementarities in their joint consumption. We propose a forecasting model that incorporates media-multiplexing behavior of both traditional and new media, their interdependencies, and consumer heterogeneity and calibrate the model using a rich database of individual-specific media activity diaries. The results suggest that accounting for media synergies within a single utility specification significantly improves model forecasts. We also introduce a utility function that directly models cross-channel media complementarities via interactive effects of the satiation parameters of own and joint consumption of various media types. Finally, our individual-level analyses generate unique insights on consumer-level media switching, multiplexing and individual heterogeneity often ignored in aggregate data.

Keywords: integrated marketing communications (IMC), media planning, multi-channel management, multimedia consumption, substitution and complementarities, interactive media, Internet advertising

Suggested Citation

Lin, Chen and Venkataraman, Sriraman and Jap, Sandy D., Media Multiplexing Behavior: Implications for Targeting and Media Planning (September 28, 2012). Marketing Science, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2153970

Chen Lin (Contact Author)

Michigan State University-Department of Marketing ( email )

632 bogue street
East Lansing, MI 48824-1121
United States

Sriraman Venkataraman

University of North Carolina (UNC) at Chapel Hill - Marketing Area ( email )

Chapel Hill, NC 27599
United States

Sandy D. Jap

Emory University - Department of Marketing ( email )

Goizueta Business School
1300 Clifton Road
Atlanta, GA 30322
United States

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