Television Advertising and Online Shopping

52 Pages Posted: 8 Apr 2014 Last revised: 24 Oct 2014

Jura Liaukonyte

Cornell University

Thales Teixeira

Harvard Business School

Kenneth C. Wilbur

University of California, San Diego (UCSD) - Rady School of Management

Date Written: October 23, 2014

Abstract

Media multitasking competes with television advertising for consumers’ attention, but it also may facilitate immediate and measurable response to some advertisements. This paper explores whether and how television advertising influences online shopping. We construct a massive dataset spanning $3.4 billion in spending by 20 brands, measures of brands’ website traffic and transactions, and ad content measures for 1,224 commercials. We use a quasi-experimental design to estimate whether and how TV advertising influences changes in online shopping within two-minute pre/post windows of time. We use non-advertising competitors’ online shopping in a difference-in-differences approach to measure the same effects in two-hour windows around the time of the ad. The findings indicate that television advertising does influence online shopping and that advertising content plays a key role. Action-focus content increases direct website traffic and sales. Product-focus and emotion-focus ad content actually reduce website traffic while simultaneously increasing purchases, with a net effect on sales that is positive for most brands. These results imply that brands seeking to attract multitaskers’ attention and dollars must select their advertising copy carefully.

Keywords: Advertising content, difference-in-differences, internet, media multitasking, online purchases, simultaneous equations model, quasi-experimental design, television

JEL Classification: M30, M31, M37

Suggested Citation

Liaukonyte, Jura and Teixeira, Thales and Wilbur, Kenneth C., Television Advertising and Online Shopping (October 23, 2014). Available at SSRN: https://ssrn.com/abstract=2421408 or http://dx.doi.org/10.2139/ssrn.2421408

Jura Liaukonyte

Cornell University ( email )

347 Warren Hall
Ithaca, NY 14853
United States

Thales Teixeira

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Kenneth C. Wilbur (Contact Author)

University of California, San Diego (UCSD) - Rady School of Management ( email )

9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States

HOME PAGE: http://kennethcwilbur.com

Register to save articles to
your library

Register

Paper statistics

Downloads
550
rank
44,972
Abstract Views
3,245
PlumX