Local Advertising Decision Makers' Perceptions of Media Effectiveness and Substitutability
By Leonard N. Reid, Karen Whitehill King, Hugh J. Martin, & Hyeonjin Soh
"The fight for local media advertising is between newspapers and radio foremost, and then between direct mail, Yellow Pages, and cable TV."
Source: Journal of Media Economics, 2005, 18(1), pgs 35-53.
Type of Promotional Material/Activity Tested: This study analyzes perceived media effectiveness within the context of local advertising comparing radio, cable TV, yellow pages, direct mail, magazines, and newspapers.
Sample Population/Methodology: 250 local advertisers/decision makers were surveyed with 130 questionnaires returned (a 52% response rate). Researchers chose three prominent local media executives familiar with the market to identify the top advertisers in the chosen market.
Nature of participants businesses
Participants' daily newspaper advertising spending levels
- Media considered the most effective in delivering advertising messages (comparing radio, cable TV, Yellow Pages, direct mail, magazines, and newspapers)
Perceptions of media substitutability
Daily newspapers are considered overall the most effective local advertising medium.
Radio ranks as the second most effective medium for local advertising.
Local advertisers who spend less on newspaper advertising rank Yellow Pages as the most effective medium -- more effective than radio and newspapers.
- Media interchangeability in local advertising is limited to a particular set of media options, namely, daily newspapers and radio.
Patterns of media effectiveness and substitutability do not vary substantially by the type of local advertiser or the amount of money spent in daily newspaper advertising.
General merchandise and consumer services sectors rank radio as their top preferred advertising medium, with newspapers as second. Auto sales and restaurants rank newspapers above both radio and cable TV.
All business classifications unanimously rank radio as their top medium in substituting for daily newspaper advertising. Cable TV came in second and the Yellow Pages came in the third choice.
No one medium is considered the most effective means for advertising in a local market.
The fight for local media advertising is between newspapers and radio foremost, and then between direct mail, Yellow Pages, and cable TV.
- Newspaper advertising offers verbal and visual means for communicating messages. Radio, conversely, offers no visual vehicle for delivering messages. Radio does, however, provide audio and sound which enhances the message. Further research could determine the differences in perceptions of national advertisers to local advertisers in their preferences to visual imagery versus audio.
Complexity Rating: 2 (Complex statistical analysis scale: 1 = none, 2 = moderate, 3 = difficult)
This journal article available on a pay-per-view basis from the publisher Taylor & Francis