Digital advertising and company value: Implications of reallocating advertising expenditures

As companies continue to shift advertising expenditures toward digital-media channels, the benefits of digital advertising (adaptability of content, more efficient consumer targeting, and higher reach per dollar) must be weighed against the opportunity cost (forgone synergy between digital and traditional advertising).
Judy Ma and Brian Du

MANAGEMENT SLANT

  • Managers should consider the proportion of advertising expenditures in digital to traditional media—that is, digital share—when making resource-allocation decisions.
  • The findings...
Not a subscriber?

Schedule your live demo with our team today