Can Old Media Enhance New Media?: How Traditional Advertising Pays off for an Online Social Network

Markus Pfeiffer and Markus Zinnbauer

Vivaldi Partners

INTRODUCTION AND REVIEW

Advertising spend is experiencing its biggest decline in history. Online advertising has also been affected by an expected 5.4 percent year-to-year decrease in revenue in Q3 2009 (Interactive Advertising Bureau [IAB], 2009a). Online advertising budgets, however, are expected to experience major increases in the coming years. Today, in the United Kingdom (and six months ago in Denmark), Internet has overtaken television as the biggest advertising sector by market share (IAB, 2009b).

In the academic world, the development of Internet advertising has led to a broad stream of studies that focus on the economic perspective of display advertisements (Evans, 2009) and implementation-oriented questions ranging from recall success factors (Danaher and Mullarkey, 2003) to design and implementation of banner ads (Spalding, Cole, and Fayer, 2009; Hong, Thong, and Tam, 2004). Furthermore, there is existing research on single-medium effectiveness within online advertising and comparative studies of the effectiveness of online and traditional advertising (Manchanda, Dubé, Goh, and Chintagunta, 2006; Robinson, Wysocka, and Hand, 2007; Lin and Chen, 2009, Rosenkrans, 2009).