Quantify sales impact of location-based advertising

Compared with the previous experimental or survey research studying attitudinal responses, the purpose of this study is to quantify sales impact of location-based advertising LBA with company archival data. The data are daily movie ticket sales via mobile phone applications, based on more than 20,000 movie fans from one of the world's biggest mobile companies. The developed dynamic structural equation model DSEM could estimate both contemporaneous and long-term sales impacts. Empirical findings reveal that: 1 in terms of magnitude, LBA's efficacy is stronger than that of pop-up advertising PUA both contemporaneously and accumulatively; 2 in terms of persistent time, while LBA only have contemporaneous impact, PUA's impact lasts for nine days. These findings would help managers to allocate resources more efficiently between advertising channels, and represent an early step of understanding LBA's effectiveness in generating sales.

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