Intertemporal Effects of Online Advertising Channels on Customers

Abstract

Advertisement is an attractive means of achieving organizational goals, such as increasing sale, revenues or profits. Previous researchers unanimously agree regarding the effectiveness of advertisement; however, there is a difference of opinion among scholars as to which channels and online sources of advertisement are the most productive. This study investigates additional information about advertising effects that may help business organizations and policy institutions. This study attempts to answer two important questions: 1) Is the long-term effect different from the short-term effect of online advertising? 2) Do the different channels of advertisement have synonymous effects on their corresponding targeted clients? The study uses daily base data on a book-selling company over the course of one year (365 daily observations). The study uses a number of time-series tests to investigate the stationarity of the data. The study then subsequently uses the Pearson correlation test and generalized least-square technique to estimate the short-term, long-term, and carryover effects of various channels of online advertising. The study shows that coupon loyalty advertising is more effective with respect to cumulative effects such as long- and short-term effects. The findings reveal that there is a difference between short- and long-term effects; however, both effects have the same signs and thus follow the same direction. The study also reveals that there is difference between the effects of various advertising channels on the volume of sales and as well as between their carryover effects. System engine marketing has the longest effect (6.7 days), followed by BA and CLA

Keywords: Advertising, Customers, E- Marketing, Intertemporal Effect

Unique Article ID: BJMS-156

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This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License

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