Media Multiplexing Behavior: Implications for Targeting and Media Planning

Marketing Science, Forthcoming

63 Pages Posted: 7 Oct 2012

See all articles by Lin Chen

Lin Chen

affiliation not provided to SSRN

Sriram Venkataraman

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Sandy D. Jap

Emory University - Department of Marketing

Date Written: October 6, 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

JEL Classification: M31

Suggested Citation

Chen, Lin and Venkataraman, Sriram and Jap, Sandy D., Media Multiplexing Behavior: Implications for Targeting and Media Planning (October 6, 2012). Marketing Science, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2158142

Lin Chen (Contact Author)

affiliation not provided to SSRN ( email )

Sriram Venkataraman

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
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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