advertising ban

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!。