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Benchmarking Advertising Efficiency

By Xueming Luo and Naveen Donthu


"In this study, printed mass media advertising shows greater impact than broadcast advertising."


Source: Journal of Advertising Research, November/December 2001, 4(6), pgs 7-18.

Type of Promotional Material/Activity Tested: Advertising expenses

Sample: Sixty-three of the top 100 national advertisers, as reported by Advertising Age (1997-98) based on measured media spending.

Methodology: Data Envelopment Analysis used to benchmark media spending inefficiency.

Metrics: Advertising expenses by media for 1997 and 1998.

Independent variables:

Dependent variable:

Top Line Results:



Take Away: This research uses an econometric analysis to assess the correlations between the media choices and overall business results.  Printed mass media advertising showed greater impact than broadcast advertising.  There are a few limitations to this study -- the data are from the late 1990’s and does not include Internet advertising.  In addition, other media forms such as direct mail were not included.  But as to the question "do consumers' media choices impact the bottom line?"   The answer is yes.

Complexity rating of original source:  2
(Complex statistical analysis scale:  1= none, 2= moderate, 3 = difficult)


Source:  Benchmarking Advertising Efficiency (not freely available)