advertising ban
DESCRIPTION
TRANSCRIPT
Advertising Bans and the Substitutability of Online and Offline Advertising
Alcohol
Problem?Has the growth of the internet reduced the effectiveness of government regulations on offline advertisement?
TH
EO
RETIC
AL
FRA
MEW
OR
KGovernment regulations on offline advertisements
Effectiveness of alcoholic campaign
Internet advertising/exposure
Awareness of product
Abstra
ct
TH
EO
RETIC
AL FR
AM
EW
OR
KOffline alcoholic advertising bans
=8% less likely to purchase alcoholic products
Abstra
ct
TH
EO
RETIC
AL FR
AM
EW
OR
KAfter online Ad exposure
=Only 3% less likely to purchase alcoholic products
Abstra
ct
MadeRobust
Systematic differences
do not provide an
alternative explanation
for the results
Literature Review
• State Alcohol Advertising Laws
• Out-of-Home Alcoholic Advertising: A 21st century Guide to Effective Regulation
• Individual state’s liquor control Web site
o First study to empirically investigate consumer substitution between offline and online advertising
o Expands the framework with which to understand the effectiveness of online advertising
Contribution to existing studies
Experiment Method。
the
The questions below ask about how likely you are to buy a product. Choose the most appropriate number for each product, using the scale below.
ProductVery
Unlikely1
Unlikely
2
Neutral
3
Likely
4
VeryLikely5
1.Shower
2.Shampoo
3.Soap
4.Alcohol
5.Coffee
6.Ice Cream
ExperimentNatural EnvironmentControlField ExperimentConceal
275 Campaigns
61,580
U.S. Web users
Detai
ls
Percentages
of respondents who say
they are likely to
purchase
Exposed to Online Alcohol Advertisement
Out-of-HomeAdvertising
Ban
No Yes
No 28.88 31.01
Yes 26.84 30.18
2.133.34
RESULTS
TH
EO
RETIC
AL
FRA
MEW
OR
KGovernment regulations on offline advertisements
Effectiveness of alcoholic campaign
Internet advertising/exposure
Awareness of product
NoSystematicDifference
Fact
ors t
hat i
nflue
nce
how p
eopl
e re
spon
d to
alco
hol a
dver
tisin
g
that
are
not
rela
ted
dire
ctly
to th
e ba
n
Assum
ptio
n
Why Second Test?In order to improve the robustness of test 1, the researchers conducted a wide battery of tests to verify the effects of systematic differences.
Horizontal
AdvertisementEffectiveness
Demo-graphics
StateCharacteristics
Alcohol consumption___
Alcohol Abuse_____________
Alternative state regulation______
_______Average age
____________Gender
____________Income
______Hours spent in Internet
RecruitmentRate
WHAT?
No statistically significant difference
Vertital
Pennsylvania
NewYork
SanFrancisco
Philadelphia
Changes in Local Advertising Regulations
Enactment of a ban
Repeal of a law that restrict the alcohol advertising in student newspaper
Toughening of regulation
Loosening of liquor advertisement in television
WHAT?
Ban Effectiveness ofOnline advertising
RESULTS
Managerial Relevance
Combine online and offline
campaigns
Internet allows companies and consumers to avoid offline restrictions
When one media channel is blocked, alternative options become more effective
Online advertising effectiveness cannot be considered separately and feasibility of offline advertising
Substitutability of Online and Offline
Advertising
In this study, Alcohol ads in places with bans were not judged as more noticeable because they were unusual, but because the message was more effective
Internet advertising substitutes for offline advertising because it is more effective
Know what is more effective before spending budget
THANKS!。