Going for Gold: Investigating the (Non)Sense of Increased Advertising Around Major Sports Events

International Journal of Research in Marketing Forthcoming

45 Pages Posted: 18 Oct 2012 Last revised: 23 Sep 2013

See all articles by Maarten J. Gijsenberg

Maarten J. Gijsenberg

University of Groningen - Department of Marketing & Marketing Research

Date Written: September 20, 2013

Abstract

Major sports events draw unsurpassed media attention. Companies are motivated to increase their advertising investments around these events to reach large audiences in a short period. Is such an advertising surge actually beneficial though, or should companies avoid advertising in these periods because of negative effects of competitive interference? This study investigates when consumer packaged goods companies should invest in advertising to increase sales: before, during, or after the event or outside these event periods. The author estimates short- and long-term own- and cross-advertising elasticities for 206 brands using four years of weekly data. Although considerable heterogeneity exists across brands, own-advertising effectiveness diminishes especially before and during major sports events, in both the short and the long run. In addition, brands benefit less from category-demand effects through competitors’ advertising. Conversely, greater increases in advertising spending resulting in significant growth in share of voice around focused, single-sport events are a successful strategy to overcome this overall general negative trend.

Keywords: Advertising, Marketing-Mix Effectiveness, Time Series, Empirical Generalizations

Suggested Citation

Gijsenberg, Maarten J., Going for Gold: Investigating the (Non)Sense of Increased Advertising Around Major Sports Events (September 20, 2013). International Journal of Research in Marketing Forthcoming. Available at SSRN: https://ssrn.com/abstract=2162861 or http://dx.doi.org/10.2139/ssrn.2162861

Maarten J. Gijsenberg (Contact Author)

University of Groningen - Department of Marketing & Marketing Research ( email )

PO Box 800
Groningen, 9700 AV
Netherlands
+31 50 363 8249 (Phone)
+31 50 363 7970 (Fax)

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