All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Rae Yule Kim
''Share of Voice: Findings from the US Automotive Industry''
( 2020, Vol. 40 No.4 )
This paper examines the impact of advertising spending on financial performances. It is often difficult to justify the ROI of advertising because the gain is often intangible. We utilize signaling theory to predict that competitive advertising spending should positively influence brand perceptions and nudge consumers to choose the brand over competitors that spend less on advertising. We implemented the system GMM on panel data to examine how competitive ad spending contributes to market share while controlling for persistence. The findings indicate that not the advertising spending but the competitive advertising spending share in the market significantly predict market dominance.
Keywords: Budgeting, business economics, advertising spending, marketing ROI
JEL: M2 - Business Economics: General
M3 - Marketing and Advertising: General
Manuscript Received : Oct 03 2020 Manuscript Accepted : Dec 28 2020

  This abstract has been downloaded 820 times                The Full PDF of this paper has been downloaded 156039 times