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The impact of advertising content on movie revenues

Author

Listed:
  • Vithala R. Rao

    (Cornell-SC Johnson College of Business, Johnson School, Cornell University)

  • S. Abraham (Avri) Ravid

    (Sy Syms School of Business, Yeshiva University
    Research Fellow, Knut Wicksell Center, Lund University)

  • Richard T. Gretz

    (University of Texas)

  • Jialie Chen

    (Research Fellow, Knut Wicksell Center, Lund University)

  • Suman Basuroy

    (University of Texas)

Abstract

We analyze the contents of print ads in the motion picture industry (e.g., number of reviews quoted in the ad, the presence of a top reviewer, size of the ad, star, director, etc.). We find that external validation (a recommendation by a top reviewer) is more important to revenues than the informative content of the ad.

Suggested Citation

  • Vithala R. Rao & S. Abraham (Avri) Ravid & Richard T. Gretz & Jialie Chen & Suman Basuroy, 2017. "The impact of advertising content on movie revenues," Marketing Letters, Springer, vol. 28(3), pages 341-355, September.
    • Handle: RePEc:kap:mktlet:v:28:y:2017:i:3:d:10.1007_s11002-017-9418-5
    DOI: 10.1007/s11002-017-9418-5
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    References listed on IDEAS

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    Cited by:

    1. Andrea Schöndeling & Alexa B. Burmester & Alexander Edeling & André Marchand & Michel Clement, 2023. "Marvelous advertising returns? A meta-analysis of advertising elasticities in the entertainment industry," Journal of the Academy of Marketing Science, Springer, vol. 51(5), pages 1019-1045, September.
    2. Nicolas R. Weber & André Marchand & Reinhard E. Kunz, 2024. "The global impact of public and private funding on cultural and economic movie success: evidence from German film funding," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 48(2), pages 259-283, June.
    3. Suman Basuroy & S. Abraham Ravid & Richard T. Gretz & B. J. Allen, 2020. "Is everybody an expert? An investigation into the impact of professional versus user reviews on movie revenues," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(1), pages 57-96, March.
    4. Jordi McKenzie, 2023. "The economics of movies (revisited): A survey of recent literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 480-525, April.
    5. Perano, Mirko & Casali, Gian Luca & Liu, Yulin & Abbate, Tindara, 2021. "Professional reviews as service: A mix method approach to assess the value of recommender systems in the entertainment industry," Technological Forecasting and Social Change, Elsevier, vol. 169(C).

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