Rights statement: This is the author’s version of a work that was accepted for publication in Technological Forecasting and Social Change. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Technological Forecasting and Social Change, 100, 2015 DOI: 10.1016/j.techfore.2015.07.018
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Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Historical impact of technological change on the US mass media advertising expenditure
AU - Esteban-Bravo, Mercedes
AU - Vidal-Sanz, Jose M.
AU - Yildirim, Gokhan
N1 - This is the author’s version of a work that was accepted for publication in Technological Forecasting and Social Change. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Technological Forecasting and Social Change, 100, 2015 DOI: 10.1016/j.techfore.2015.07.018
PY - 2015/11
Y1 - 2015/11
N2 - Historically, the U.S. advertising industry has been experiencing enormous movements as a result of rapid advances in the media technology and the business cycle. In this paper, we study the historical behavior of the U.S. advertising industry, correcting for inflation. We find that the introduction of new media cause structural breaks in the mean growth rates of advertising expenditure for the incumbent media. In addition, we find that random components of media advertising spending follow a long-term equilibrium where the cross-elasticities across newer and older media can show substitution or complementarity patterns depending on the type of audience. We examine the influence of the economic conditions on the aggregated advertising expenditure, and on each media spending. We also measure the impact of the recent takeoff in mobile advertising.
AB - Historically, the U.S. advertising industry has been experiencing enormous movements as a result of rapid advances in the media technology and the business cycle. In this paper, we study the historical behavior of the U.S. advertising industry, correcting for inflation. We find that the introduction of new media cause structural breaks in the mean growth rates of advertising expenditure for the incumbent media. In addition, we find that random components of media advertising spending follow a long-term equilibrium where the cross-elasticities across newer and older media can show substitution or complementarity patterns depending on the type of audience. We examine the influence of the economic conditions on the aggregated advertising expenditure, and on each media spending. We also measure the impact of the recent takeoff in mobile advertising.
KW - Media
KW - Advertising expenditure
KW - Structural breaks
KW - Cointegration
U2 - 10.1016/j.techfore.2015.07.018
DO - 10.1016/j.techfore.2015.07.018
M3 - Journal article
VL - 100
SP - 306
EP - 316
JO - Technological Forecasting and Social Change
JF - Technological Forecasting and Social Change
SN - 0040-1625
ER -