Local Advertising Decision Makers' Perceptions of Media Effectiveness and Substitutability

In this article, we report the results of a survey designed to answer 6 questions on perceived media effectiveness and substitutability within the context of local advertising. Results from questionnaires completed by 130 local advertising decision makers reveal that (a) daily newspapers and radio are perceived as the most effective media for local advertising; (b) media interchangeability in local advertising is limited to a particular set of media options, namely, daily newspapers and radio; and (c) patterns of media effectiveness and substitutability do not vary substantially by the type of local advertiser or the amount of money spent in daily newspaper advertising. Four implications are suggested by the results.

[1]  W. Nicholson.  Microeconomic theory: basic principles and extensions , 1972 .

[2]  Leonard N. Reid,et al.  Advertising Managers' Perceptions of Sales Effects and Creative Properties of National Newspaper Advertising: The Medium Revisited , 2003 .

[3]  J. M. Ferguson.  Daily Newspaper Advertising Rates, Local Media Cross-Ownership, Newspaper Chains, and Media Competition , 1983, The Journal of Law and Economics.

[4]  Stephen Lacy,et al.  Competition, Circulation and Advertising , 2004 .

[5]  Stephen Lacy,et al.  The economics and regulation of United States newspapers , 1993 .

[6]  Ken Smith.  Advertisers' Media Selection in Small Newspaper Markets , 1998 .

[7]  Leonard N. Reid,et al.  A Demand-Side View of Media Substitutability in National Advertising: A Study of Advertiser Opinions about Traditional Media Options , 2000 .

[8]  O. Gomes.  The dynamics of television advertising with boundedly rational consumers , 2006 .

[9]  Stephen Lacy,et al.  The Impact of Intermedia and Newspaper Competition on Advertising Linage in Daily Newspapers , 1999 .

[10]  Mary Alice Shaver,et al.  Application of Pricing Theory in Studies of Pricing Behavior and Rate Strategy in the Newspaper Industry , 1995 .

[11]  Glen T. Cameron,et al.  How local advertisers choose and use advertising media , 1993 .

[12]  R. Picard.  MEASURING MEDIA CONTENT, QUALITY, AND DIVERSITY APPROACHES AND ISSUES IN CONTENT RESEARCH , 2000 .

[13]  Walter Nicholson,et al.  Microeconomic Theory : Basic Principles and Extensions. --2nd. ed , 1978 .

[14]  Janet A. Bridges,et al.  Rosse's Model Revisited: Moving to Concentric Circles to Explain Newspaper Competition , 2002 .

[15]  James N. Dertouzos,et al.  ECONOMIC EFFECTS OF MEDIA CONCENTRATION: ESTIMATES FROM A MODEL OF THE NEWSPAPER FIRM , 1990 .

[16]  R. Picard.  A Note on the Relations Between Circulation Size and Newspaper Advertising Rates , 1998 .

[17]  Wendy Macias,et al.  Selecting Media for National Advertising Revisited: Criteria of Importance to Large-Company Advertising Managers , 2004 .

[18]  H. Kranenburg.  Economic Effects of Consolidations of Publishers and Newspapers in the Netherlands , 2001 .