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Economic Growth and Advertising Expenditures in Different Media in Different Countries

Author

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  • Richard van der Wurff
  • Piet Bakker
  • Robert Picard

Abstract

Newspaper advertising expenditures depend more strongly on economic development than advertising spent in other media. Gross domestic product (GDP), therefore, predicts ad spending better in countries where newspapers are an important advertising medium. GDP also predicts ad spending better in countries where a larger proportion of GDP is spent on advertising. Intermedia competition, on the other hand, has little impact. In conclusion, the authors propose to distinguish three advertising cultures where ad spending follows economic development in different ways.

Suggested Citation

  • Richard van der Wurff & Piet Bakker & Robert Picard, 2008. "Economic Growth and Advertising Expenditures in Different Media in Different Countries," Journal of Media Economics, Taylor & Francis Journals, vol. 21(1), pages 28-52.
    • Handle: RePEc:taf:jmedec:v:21:y:2008:i:1:p:28-52
    DOI: 10.1080/08997760701806827
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    Citations

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    Cited by:

    1. Del Barrio-García, Salvador & Kamakura, Wagner A. & Luque-Martínez, Teodoro, 2019. "A Longitudinal Cross-product Analysis of Media-budget Allocations: How Economic and Technological Disruptions Affected Media Choices Across Industries," Journal of Interactive Marketing, Elsevier, vol. 45(C), pages 1-15.
    2. Affeldt, P. & Argentesi, E. & Filistrucchi, Lapo, 2021. "Estimating Demand with Multi-Homing in Two-Sided Markets," Other publications TiSEM 1317bf39-d02e-4f61-a34f-e, Tilburg University, School of Economics and Management.
    3. Esteban-Bravo, Mercedes & Vidal-Sanz, Jose M. & Yildirim, Gökhan, 2015. "Historical impact of technological change on the US mass media advertising expenditure," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 306-316.
    4. Zeynep Bayazit & Elif Guneren Genc, 2019. "An Analysis of Reciprocal Influence between Advertising Expenditures and Gross Domestic Product," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 41-47.
    5. Johannes Putzke & Detlef Schoder & Kai Fischbach, 2010. "Adoption of Mass-Customized Newspapers: An Augmented Technology Acceptance Perspective," Journal of Media Economics, Taylor & Francis Journals, vol. 23(3), pages 143-164.
    6. Shafiu Ibrahim Abdullahi & Shuaibu Mukhtar, 2020. "Measuring Advertising Expenditure Effects on the Nigerian Economy," Virtual Economics, The London Academy of Science and Business, vol. 3(3), pages 80-93, July.
    7. Gillian Doyle, 2011. "Media Economics and Regulation," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 38, Edward Elgar Publishing.
    8. Artem A. Eremin, 2014. "The Effect of Advertising on Economic Growth in the USA from a New Methodological Perspective," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-14.
    9. M. Rimscha, 2013. "It’s not the economy, stupid! External effects on the supply and demand of cinema entertainment," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 37(4), pages 433-455, November.
    10. Szczepańska Magdalena & Wilkaniec Agnieszka & Škamlová Lucia, 2019. "Visual pollution in natural and landscape protected areas: Case studies from Poland and Slovakia," Quaestiones Geographicae, Sciendo, vol. 38(4), pages 133-149, December.
    11. Angela ALBU & Andrei SAFTIUC & Daniel MAFTEI, 2018. "Reflection of Business Activities by Mass Media," Book chapters-LUMEN Proceedings, in: Carmen NÄ‚STASE (ed.), The 14th Economic International Conference: Strategies and Development Policies of Territories: International, Country, Region, City, Location Challen, edition 1, volume 6, chapter 11, pages 100-112, Editura Lumen.
    12. Christian Enz, 2022. "Optimization potential in SME marketing communication in a Czech-German comparison," Economics Working Papers 2022-03, University of South Bohemia in Ceske Budejovice, Faculty of Economics.
    13. Özturan, Peren & Deleersnyder, Barbara & Özsomer, Ayşegül, 2024. "Brand advertising competition across economic cycles," International Journal of Research in Marketing, Elsevier, vol. 41(2), pages 325-343.
    14. Arshia Kaul & Sugandha Aggarwal & Mohan Krishnamoorthy & P. C. Jha, 2018. "Multi-period media planning for multi-products incorporating segment specific and mass media," Annals of Operations Research, Springer, vol. 269(1), pages 317-359, October.
    15. Alvin J. Silk & Charles King III, 2008. "Concentration Levels in the U.S. Advertising and Marketing Services Industry: Myth vs. Reality," Harvard Business School Working Papers 09-044, Harvard Business School.
    16. Ji, Sung Wook & Choi, Young-jun & Ryu, Min Ho, 2016. "The economic effects of domestic search engines on the development of the online advertising market," Telecommunications Policy, Elsevier, vol. 40(10), pages 982-995.

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