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Should TV Advertisers Maximize Immediate Online Response?

49 Pages Posted: 19 Sep 2017  

Rex Yuxing Du

University of Houston - C.T. Bauer College of Business

Linli Xu

University of Minnesota - Twin Cities - Carlson School of Management

Kenneth C. Wilbur

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

Date Written: September 16, 2017

Abstract

As technology advances, television advertising tactics evolve. Many media agencies now offer proprietary solutions to maximize immediate online response following TV ad insertions. We investigate this practice by analyzing a unique dataset of minute-by-minute TV ad insertions, audience sizes and characteristics, and branded search volume for daily fantasy sports and pick-up truck brands. Even TV ads with small audiences produce detectable search spikes for the advertised brand, with 75% of incremental search volume occurring within two minutes. Search response per ad viewer is greater after brand-focused national ads than after price-focused local ads, and after less informative ads than after more informative ads, suggesting that immediate online response should not serve as the sole optimization metric for all ad campaigns. The data show that ads produce positive asymmetric spillovers to competitors' search volume and that media lift factors have brand-specific effects, suggesting that new practices may soften competition and reduce competitive advertising clutter in equilibrium.

Suggested Citation

Du, Rex Yuxing and Xu, Linli and Wilbur, Kenneth C., Should TV Advertisers Maximize Immediate Online Response? (September 16, 2017). Available at SSRN: https://ssrn.com/abstract=3037734

Rex Yuxing Du

University of Houston - C.T. Bauer College of Business ( email )

Houston, TX 77204-6021
United States

Linli Xu

University of Minnesota - Twin Cities - Carlson School of Management ( email )

321 - 19th Avenue South
Minneapolis, MN 55455
United States

HOME PAGE: http://www.tc.umn.edu/~linlixu/

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

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