Determinants of Advertising Expenditures: Aggregate and CrossMedia Evidence
Brendan ODonovan The National Bank of New Zealand LtdDavid Rae Organisation of Economic Cooperation and DevelopmentArthur Grimes Institute of Policy Studies, Victoria University of Wellington
INTRODUCTION
Advertising expenditures account for approximately 1 per cent of GDP in the developed world (Waterson, 1992). They grew by an average 5 per cent p.a. in real terms over the 1980s. The advertising industry is therefore an important component of economic activity in its own right, as well as through its potential importance in affecting other economic aggregates (notably consumption). Given...