Going for gold: Investigating the (non)sense of increased advertising around major sports events

Maarten J. Gijsenberg*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

32 Citations (Scopus)
1857 Downloads (Pure)

Abstract

Major sports events draw unsurpassed media attention. Companies are motivated to increase their advertising investments around these events to reach large audiences in a short period. Is such an advertising surge actually beneficial though, or should companies avoid advertising in these periods because of negative effects of competitive interference? This study investigates when consumer packaged goods companies should invest in advertising to increase sales: before, during, or after the event or outside these event periods. The author estimates short- and long-term own- and cross-advertising elasticities for 206 brands using four years of weekly data. Although considerable heterogeneity exists across brands, own-advertising effectiveness diminishes especially before and during major sports events, in both the short and the long run. In addition, brands benefit less from category-demand effects through competitors' advertising. Conversely, greater increases in advertising spending resulting in significant growth in share of voice around focused, single-sport events are a successful strategy to overcome this overall general negative trend. (C) 2013 Elsevier B.V. All rights reserved.

Original languageEnglish
Pages (from-to)2-15
Number of pages14
JournalInternational Journal of Research in Marketing
Volume31
Issue number1
DOIs
Publication statusPublished - Mar-2014

Keywords

  • Advertising
  • Marketing-mix effectiveness
  • Time series
  • Empirical generalizations
  • CONSUMER MEMORY
  • BUSINESS-CYCLE
  • SCANNER DATA
  • UNIT-ROOT
  • INTERFERENCE
  • SPONSORSHIP
  • DEMAND
  • MODELS
  • SALES
  • PRICE

Cite this