The main and synergetic effects of the
exposure to online and offline advertising
on online and offline sales
By Jelmer van der Land
S2565498
Content
• The marketing environment
• Goal of the study
• Conceptual model
• Data
• Modeling approach
• Results
The marketing environment
• Consumers are exposed to advertising
messages on various media outlets.
• Consumers buy at several channels.
• The job of a marketing manager is
becoming more complex.
Synergies
1 + 1 = 3
Synergies exist when the combined effect of two (or more) media
channels is larger than the sum of their individual effects.
Goal of the study
To get a more in-depth and comprehensive understanding of the
effects of the exposure to offline and online advertisement on:
• Sales in general,
• Offline sales,
• Online sales,
Data
• Media Markt: A large electronics retailer.
• Panel data (GFK) on 9934 households across 26
weeks.
• Amount of exposure to print, banner, television,
radio, and folder advertisement.
Modeling approach
• Logistic regression: Cross-sectional / panel data analysis in Stata.
• Six model versions were tested.
• Binomial dependent variable = Purchase occasion at Media Markt.
Three versions used: (1) sales in general, (2) offline, (3) online.
• Independent variables: exposure to print, radio, television, folder, Google, and
non- Google banner advertisement and their interactions.
Results
• Effects on online sales could not be tested.
• Approximately same results for sales in general and offline sales.
Positive long term effects for folder, radio and Google and non-Google
banner advertisement.
Positive short term effects for folder and non - Google banner
advertisement.
Within channel effects were found.
Cross effects were found
Discussion
• More significant long term than short term advertising effects.
Wear in, wear out, and forgetting.
• No positive effect was found for television advertisement.
Overestimated exposure ( e.g. aversive behavior).
Bad commercials.
• No positive effect was found for print advertisement.
Ad clutter.
Bad ad.
• No positive synergetic effects were established.
Ineffective coordination among the marketing instruments.
Managerial implications
• Advertisement does not always create the desired response
• Advertising is more effective when creative, understandable,
convincing and when research was conducted.
• It can take some time before the desired effects emerge.
• Integrated marketing communication programs enhance synergies:
Coordinate the various marketing instruments in such a way that they
share the same objective and focus on a common message.
Thank you for your attention
References
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