Allocating Spend on Digital Video Advertising: Longitudinal Analysis Across Two Industries

26 Pages Posted: 21 Feb 2018 Last revised: 27 Feb 2018

See all articles by Nazrul I. Shaikh

Nazrul I. Shaikh

University of Miami - Department of Industrial Engineering

Mahima Hada

City University of New York - Allen G. Aaronson Department of Marketing & International Business

Niva Shrestha

ACNielsen

Date Written: February 7, 2017

Abstract

Firms have lately been increasing their investments in digital video advertising at the expense of television advertising. We examine the efficacy of such investments with a media efficiency and saturation analysis on longitudinal datasets from a national restaurant chain, and a national food and beverage brand. We find that digital video advertising is indeed more efficient than television advertising, and so a shift is justifiable. However, these differences in efficiency decrease rapidly as investment levels behind digital video advertising increase. The impact of digital video advertising saturates early and firms need to account for such diminishing returns in their media strategy.

Keywords: marketing effectiveness

JEL Classification: M11, M30

Suggested Citation

Shaikh, Nazrul I. and Hada, Mahima and Shrestha, Niva, Allocating Spend on Digital Video Advertising: Longitudinal Analysis Across Two Industries (February 7, 2017). Journal of Advertising Research, Forthcoming; Baruch College Zicklin School of Business Research Paper No. 2018-02-06. Available at SSRN: https://ssrn.com/abstract=3121717

Nazrul I. Shaikh (Contact Author)

University of Miami - Department of Industrial Engineering ( email )

Coral Gables, FL 33124
United States

Mahima Hada

City University of New York - Allen G. Aaronson Department of Marketing & International Business ( email )

One Bernard Baruch Way, B12-240
New York, NY 10010-5585
United States

Niva Shrestha

ACNielsen ( email )

United States

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