The effectiveness of pre-release advertising for motion pictures: An empirical investigation using a simulated market
نویسندگان
چکیده
We use data on a movie’s stock price as it trades on the Hollywood Stock Exchange, a popular online market simulation, to study the impact of movie advertising. We find that advertising has a positive and statistically significant effect on expected revenues, but that the effect varies strongly across movies of different ‘‘quality’’. The point estimate implies that the returns to advertising for the average movie are negative. 2007 Elsevier B.V. All rights reserved. JEL classification: D23; L23
منابع مشابه
Advertising and Expectations: The Effectiveness of Pre- Release Advertising for Motion Pictures
What is the effect of pre-release advertising on the demand for a product? And does the magnitude of that effect vary according to the quality of the good? We empirically examine these questions in the context of the motion picture industry. We make use of a unique, proprietary data set that covers weekly television advertising expenditures, weekly expectations of the market performance, and qu...
متن کاملDesigning a Native Model for Assessment of the Effectiveness of Advertising
The purpose of this research was to identify and rank the factors influencing the design of the native model for assessing the effectiveness of the advertisement. Firstly, according to the research literature, the criteria and sub-criteria influencing the effectiveness of advertising have been extracted, then the Delphi triple stages were used that the panel included 20 professors and marketing...
متن کاملSocial Learning and Optimal Advertising in the Motion Picture Industry
Social learning is thought to be a key determinant of the demand for motion pictures. This can be a double-edged sword for motion picture distributors, however, because when a film is good, social learning can enhance the effectiveness of movie advertising, but when a film is bad, it can mitigate this effectiveness. This paper analyzes an equilibrium model of the demand for films and the supply...
متن کاملAn Investigation of Advertising Appeal on Consumer Response in Service Advertising
Advertising appeal plays a significant role in the execution of advertising. In service advertising, they are of more importance because of the peculiar characteristics of services. This study attempts to investigate the impact of emotional and rational appeal on service advertising. This study also studies the impact of typology of service as a moderating variable in the relation of advertisin...
متن کاملMovie Advertising and the Stock Market Valuation of Studios
Major studios typically launch fewer than twenty motion pictures per year, so the financial performance of a single movie release can have a major effect on the studio’s profitability. The Efficient Capital Markets hypothesis posits that the stock market would recognize such an impact. In this paper we study how single movie releases impact the investor valuation of the distributor. We analyze ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید
ثبت ناماگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید
ورودعنوان ژورنال:
- Information Economics and Policy
دوره 19 شماره
صفحات -
تاریخ انتشار 2007