Advertising as a Signal

Kihlstrom, Richard E.; Riordan, Michael

doi:10.1086/261235

Cited by 519 publications

(241 citation statements)

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“…18 Some films have zero television advertising. This is consistent with a signalling model of advertising (Kihlstrom andRiordan, 1984, Milgrom andRoberts, 1986) in which films with low quality will not be advertised but films of high quality will be advertised.…”

Section: Advertising Impactssupporting

confidence: 85%

Determinants of UK Box Office Success: The Impact of Quality Signals

Elliott

Simmons

2008

Rev Ind Organ

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This paper analyses the roles of various potential quality signals in the demand for cinema in the United Kingdom using a breakdown of advertising totals by media category. Estimation of a two stage least squares model with data for 546 films released in the United Kingdom shows that the impacts of types of advertising on box office revenues vary both in channels and magnitudes of impact. We also offer a more sophisticated treatment of critical reviews than hitherto by examining the spread (entropy) rather than just the mean rating.

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Section: Advertising Impactssupporting

confidence: 85%

Determinants of UK Box Office Success: The Impact of Quality Signals

Elliott

Simmons

2008

Rev Ind Organ

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“…It appears that personalizing ads using user-disclosed information in the ad copy increases their appeal if accompanied by appropriate privacy controls. This was studied from a theoretical perspective by Anand and Shachar (2009), who pointed out that the signaling power of a targeted ad in the traditional ad-signaling framework (as laid out by Kihlstrom and Riordan (1984); Milgrom and Roberts (1986)), could be strengthened by personalizing the ad, making consumers more likely to assume there is a match between them and the product. This paper is also one of the first studies of advertising by an external firm on a social networking site.…”

Section: Introductionmentioning

confidence: 99%

Social Networks, Personalized Advertising, and Privacy Controls

Tucker

2011

SSRN Journal

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This paper investigates how internet users' perception of control over their personal information affects how likely they are to click on online advertising. The paper uses data from a randomized field experiment that examined the relative effectiveness of personalizing ad copy to mesh with existing personal information on a social networking website. The website gave users more control over their personally identifiable information in the middle of the field test. The website did not change how advertisers used anonymous data to target ads. After this policy change, users were twice as likely to click on personalized ads. There was no comparable change in the effectiveness of ads that did not signal that they used private information when targeting. The increase in effectiveness was larger for ads that used less commonly available private information to personalize their message. This suggests that giving users the perception of more control over their private information can be an effective strategy for advertising-supported websites.

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“…2 Thus, our results are in conflict with the arguments in Chemmanur and Yan (2011) and 1 See, e.g., Grullon, Kanatas, and Weston (2004), Frieder and Subrahmanyam (2005), Chemmanur andYan (2011), andLou (2014)) 2 Another argument could be made based on the idea that advertising can serve as a signal for product quality for potential customers (see e.g. Kihlstrom and Riordan (1984) and Milgrom and Roberts (1986)). If capital market participants are also uninformed about the true quality of a company's products, advertising might also offer a valuable signal to them.…”

Section: Introductionmentioning

confidence: 65%

Advertising, Attention, and Financial Markets

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractWe investigate the impact of product market advertising on investor attention and financial market outcomes. Using daily advertising data allows us to identify short-term effects of advertising. We measure daily investor attention based the company's number of Wikipedia page views. We show that TV and newspaper advertising positively impacts short-term investor attention. It also positively impacts turnover and liquidity, but the effects are not economically significant. Most importantly, asset prices are not influenced by advertising in the short run. These findings are different from studies using yearly advertising expenditures and suggest that attempts to temporarily inflate stock returns via short-term adjustments to advertising are ineffective.

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Advertising as a Signal

Cited by 519 publications

References 1 publication

Determinants of UK Box Office Success: The Impact of Quality Signals

Determinants of UK Box Office Success: The Impact of Quality Signals

Social Networks, Personalized Advertising, and Privacy Controls

Advertising, Attention, and Financial Markets

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