Measuring and modelling advertising effectiveness have attracted considerable attention from researchers and practitioners. This paper presents development, testing and applications of a new market model for advertising effect. It represents an extension of a model developed by Rice and Davis (1993) for the Canadian Media Directors' Council. The dynamic advertising effects are modelled by a modification of the adstock approach. Many advertising and media practitioners pose questions such as: How can effect modelling by applied to problems in advertising and media other than for assessing advertising effectiveness? A case study exemplifies some applications of the model for optimising the media plan: Advertising budget setting, required budget to sustain effectiveness objectives, and allocating the budget over time.
This paper presents a comparison of the radio landscape and radio advertising in European countries. The commercial radio landscape in Europe varies considerably from country to country, ranging from Sweden where there is no commercial radio to Italy where there are around 2,5 commercial stations. In many countries, broadcasting is dominated by the state-run national networks and stations (eg. Austria, Switzerland, UK), others have a highly de-regulated set-up without the co-ordination of networks (eg. Italy, Finland). Radio advertising expenditure depends on many factors, most obviously the reach and audience size of commercial radio. Regulations play a large part in many countries and can make the medium inflexible. In some countries governments have ruled against the formation of networks by local stations, thereby making it difficult to provide the mass market penetration which is attractive to large advertisers. The paper looks at these and other factors, covering types and numbers of stations, audience reach, commercial stations' share of radio audience, average time of listening, the distribution of total advertising expenditure on national and local advertising, and media cost level for commercial time. A systematic comparison of these factors between countries is presented. Based on this, radio advertising expenditure in Denmark is forecasted, and its relationship to coverage demonstrated. Conclusions are presented on how these factors determine the radio advertising potential and radio share of total adspend.
The present paper presents findings and a status report regarding one of these projects. Namely, a study of the influence of West German commercial televisions. First, it is analysed what brands and products are advertised, which are available in Denmark also. All spots shown in most of 1983 and 1984 are included in this analysis. Secondly, the viewing of West German television in Denmark, and particularly of commercials broadcasted on West German television are explored. Finally, in the third step a number of possible effects are studied. Since West German television can only be seen in Southern Denmark, a region in this part of the country has been identified, which in terms of socio- economic and other factors is identical to a similar region in Northern Jutland, where West German television cannot be seen. In these two regions distributions and market shares are measured with Nielsen type data together with brand awareness, promotion and price activities, etc.
A partial problem at the planning of market communication is to make an optimal media choice. A decision model of an optimal media choice is called a media choice model and the formulation of such a model should take its out spring in an individual model, describing the buyer behavior of the individual. In this paper a realistic model of advertising response at individual level is developed and applied. Based on realistic and empirically supported assumptions of advertising effect, a response model is constructed and in order to consider the influence of time it is made dynamic.