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

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  • Gijsenberg, Maarten J.

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.

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  • Gijsenberg, Maarten J., 2014. "Going for gold: Investigating the (non)sense of increased advertising around major sports events," International Journal of Research in Marketing, Elsevier, vol. 31(1), pages 2-15.
    • Handle: RePEc:eee:ijrema:v:31:y:2014:i:1:p:2-15
    DOI: 10.1016/j.ijresmar.2013.09.004
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    Cited by:

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    3. Stäbler, Samuel & Himme, Alexander & Edeling, Alexander & Backhaus, Max, 2023. "How firm communication affects the impact of layoff announcements on brand strength over time," International Journal of Research in Marketing, Elsevier, vol. 40(3), pages 700-723.
    4. Stijn Maesen & Lien Lamey & Anne ter Braak & Léon Jansen, 2022. "Going healthy: how product characteristics influence the sales impact of front-of-pack health symbols," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 108-130, January.
    5. Minnema, Alec & Bijmolt, Tammo H.A. & Non, Mariёlle C., 2017. "The impact of instant reward programs and bonus premiums on consumer purchase behavior," International Journal of Research in Marketing, Elsevier, vol. 34(1), pages 194-211.
    6. Stäbler, Samuel & Himme, Alexander & Edeling, Alexander & Backhaus, Max, 2023. "How firm communication affects the impact of layoff announcements on brand strength over time," Other publications TiSEM b65b6561-d780-4d3f-a490-0, Tilburg University, School of Economics and Management.
    7. Wolters, Jannik & Huchzermeier, Arnd, 2021. "Joint In-Season and Out-of-Season Promotion Demand Forecasting in a Retail Environment," Journal of Retailing, Elsevier, vol. 97(4), pages 726-745.
    8. Becker, Maren & Gijsenberg, Maarten J., 2023. "Consistency and commonality in advertising content: Helping or Hurting?," International Journal of Research in Marketing, Elsevier, vol. 40(1), pages 128-145.
    9. Gijsenberg, Maarten & Verhoef, Pieter, 2018. "Moving Forward," Research Report 2018003-MARK, University of Groningen, Research Institute SOM (Systems, Organisations and Management).

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