Advertising and Brand Attitudes: Evidence from 575 Brands Over Five Years

55 Pages Posted: 19 Apr 2018 Last revised: 13 Aug 2018

Rex Yuxing Du

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

Mingyu Joo

University of California, Riverside - School of Business

Kenneth C. Wilbur

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

Date Written: August 10, 2018

Abstract

Little is known about how different types of advertising affect brand attitudes. We investigate the relationships between three brand attitude variables (perceived quality, perceived value and recent satisfaction) and three types of advertising (national traditional, local traditional and digital). The data represent ten million brand attitude surveys and $264 billion spent on ads by 575 regular advertisers over a five-year period, approximately 37% of all ad spend measured between 2008 and 2012. Inclusion of brand/quarter fixed effects and industry/week fixed effects brings parameter estimates closer to expectations without major reductions in estimation precision. The findings indicate that (i) national traditional ads increase perceived quality, perceived value, and recent satisfaction, (ii) local traditional ads increase perceived quality and perceived value, (iii) digital ads increase perceived value, and (iv) competitor ad effects are generally negative.

Keywords: Advertising, Brand Attitude, Brand Tracking Metrics, Media Mix Models

JEL Classification: M30, M31, M37

Suggested Citation

Du, Rex Yuxing and Joo, Mingyu and Wilbur, Kenneth C., Advertising and Brand Attitudes: Evidence from 575 Brands Over Five Years (August 10, 2018). Available at SSRN: https://ssrn.com/abstract=3154859 or http://dx.doi.org/10.2139/ssrn.3154859

Rex Yuxing Du

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

Houston, TX 77204-6021
United States

Mingyu Joo

University of California, Riverside - School of Business ( email )

900 University Ave.
Riverside, CA 92521
United States

HOME PAGE: http://www.mingyujoo.com

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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