Advertising and Public Policy: The Macroeconomic Effects of Advertising

Abstract

Four research traditions on the effects of advertising are identified, and one of them—the tradition of macroeconomic studies—is carefully differentiated from the other three. A review of this macro tradition is undertaken to retrace the kinds of questions raised about the macro effects of advertising, evaluate the statistical procedures used to ascertain the causal nature of macro advertising relationships, and specify the ideal research design for studying advertising macro effects. Moving toward the implementation of this design, the authors present and interpret the findings from the first stage of their work. Emphasis is on the relevance of macro studies for public policy makers (legislators, regulators, and courts), whose decisions affect the life of the advertising institution, and for those advertisers, agencies, and media that can understand and apply the implications of the information provided by macro studies.

Market Response Models: Econometric and Time Series Analysis

“…Causality in both Nicosia (1981) prewhitening and directions between Sims test advertising and aggregate consumption. Leone (1983) Frequently Double Advertising has primary purchased prewhitening and selective demand grocery effects.…”

“…Using the Sims method, Jacobson and Nicosia (1981) established a contemporaneous relation between annual advertising and personal consumption in the u.K., plus one-year lagged effects in both directions. Using the Sims method, Jacobson and Nicosia (1981) established a contemporaneous relation between annual advertising and personal consumption in the u.K., plus one-year lagged effects in both directions.…”

Marketing as Innovation the Eighth Paradigm

“…The paradigm encompasses elements of lobbying, propagandizing, publicizing and negotiation . 53) as well as advertising (Bogart, 1978;Jacobsen and Nicosia, 1981). It also incorporates the work on international marketers as change agents (Thorelli, 1966;Hill and Still, 1980) and social marketing, which has been developing along its own path (Kotler and Zaltmann, 1971;Levy and Zaltman, 1975, ch.…”

Comparing the effects of mass media and telecommunications on economic development: A pooled time series analysis

“…Verdon, McConnell, and Roesler (1969) were the first to study the causal relationship between advertising and GNP, but their research was inconclusive. Causality was detected in a study by Taylor and Weiserbs (1972) and confirmed by some recent studies (Jacob & Nicosia, 1981;Jung & Seldon, 1995). However, consensus on the causal relationship between advertising and consumption has not been reached among researchers.…”