Skip to main content

Main menu

  • Home
  • Articles
    • Current issue
    • Archive
    • Digital First
    • JAR Best Paper
    • Open Access
  • Videos
    • JAR Webinars
    • ARF Insights Studio
  • Submit
    • Submit a manuscript
  • Calls For Papers
    • Insights for Advertisers on Immersive Technologies
    • Past Calls
  • About
    • About JAR
    • Impact factor
    • Meet the Editors
    • ARF and Editorial Review
    • ARF members
    • Subscribe to JAR
    • Pay per view
    • JAR in the News
    • My Folders
    • Feedback
    • Contact
  • Other Publications
    • jadvertres

User menu

  • Subscribe
  • Contact Us

Search

  • Advanced search
  • Other Publications
    • jadvertres

Log in

  • Facebook
  • Twitter
  • Linkedin
the Journal of Advertising Research

Advanced Search

  • Home
  • Articles
    • Current issue
    • Archive
    • Digital First
    • JAR Best Paper
    • Open Access
  • Videos
    • JAR Webinars
    • ARF Insights Studio
  • Submit
    • Submit a manuscript
  • Calls For Papers
    • Insights for Advertisers on Immersive Technologies
    • Past Calls
  • About
    • About JAR
    • Impact factor
    • Meet the Editors
    • ARF and Editorial Review
    • ARF members
    • Subscribe to JAR
    • Pay per view
    • JAR in the News
    • My Folders
    • Feedback
    • Contact

Digital Advertising And Company Value

Implications of Reallocating Advertising Expenditures

Judy Ma, Brian Du
DOI: 10.2501/JAR-2018-002 Published 1 September 2018
Judy Ma
California State University, East Bay,
  • Find this author on Google Scholar
  • Search for this author on this site
  • For correspondence: judy.ma@csueastbay.edu
Brian Du
California State University, East Bay,
  • Find this author on Google Scholar
  • Search for this author on this site
  • For correspondence: brian.du@csueastbay.edu
  • Article
  • Figures & Data
  • Info
  • PDF
Loading

ABSTRACT

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). Using a hand-matched proprietary dataset of 1,538 companies from 2001 to 2012, this study documents that digital share—the ratio of digital advertising to traditional advertising—has an inverted U-shaped relationship with company value. The empirical evidence presents an important implication for managers: The beneficial impact of increasing digital share becomes detrimental when the current ratio of digital to traditional advertising exceeds 15:1.

  • Received June 6, 2016.
  • Received (in revised form) February 12, 2017.
  • Accepted April 11, 2017.
  • Copyright© 2018 ARF. All rights reserved.
View Full Text

ARF MEMBERS

If you are a member of the Advertising Research Foundation, you can access the content by logging in here
Log In

Pay Per Article - You may access this article (from the computer you are currently using) for 30 days for US$20.00

Regain Access - You can regain access to a recent Pay per Article purchase if your access period has not yet expired.

Log in using your username and password

Forgot your user name or password?
Forgot your user name or password?
PreviousNext
Back to top

Vol 58 Issue 3

Journal of Advertising Research: 58 (3)
  • Table of Contents
  • Table of Contents (PDF)
  • Cover (PDF)
  • About the Cover
  • Index by author
  • Ed Board (PDF)
Email

Thank you for your interest in spreading the word about the Journal of Advertising Research.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Digital Advertising And Company Value
(Your Name) has forwarded a page to you from the Journal of Advertising Research
(Your Name) thought you would like to see this page from the Journal of Advertising Research web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Print
Alerts
Sign In to Email Alerts with your Email Address
Citation Tools
Digital Advertising And Company Value
Judy Ma, Brian Du
Journal of Advertising Research Sep 2018, 58 (3) 326-337; DOI: 10.2501/JAR-2018-002

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Download PDF
Request Permissions
Share
Digital Advertising And Company Value
Judy Ma, Brian Du
Journal of Advertising Research Sep 2018, 58 (3) 326-337; DOI: 10.2501/JAR-2018-002
Reddit logo Twitter logo Facebook logo Mendeley logo
Save to my folders

Jump to

  • Article
    • ABSTRACT
    • MANAGEMENT SLANT
    • INTRODUCTION
    • BACKGROUND AND PROPOSITION
    • METHODOLOGY
    • RESULTS
    • DISCUSSION
    • LIMITATIONS AND FUTURE RESEARCH
    • ABOUT THE AUTHORS
    • REFERENCES
  • Figures & Data
  • Info
  • PDF
  • Tweet Widget
  • Facebook Like
  • Google Plus One

More in this TOC Section

  • When Brands Go Dark: A Replication and Extension
  • The Stories You Tell: Crafting Managerially Relevant Articles Based on Qualitative Research
  • A Comparison of Social Media Influencers’ KPI Patterns across Platforms
Show more Articles

© 2023 the Journal of Advertising Research

The ARF is the premier advertising industry association for creating, aggregating, synthesising and sharing the knowledge required by decision makers to lead and succeed.

www.thearf.org

JAR is published four times a year for the Advertising Research Foundation by WARC. Both subscribers and ARF members can access recent issues of JAR via this site.

A larger JAR archive is accessible at WARC, alongside case studies, best practice guides, marketing intelligence, consumer insight, industry trends and latest news from around the world.

Take a trial of WARC.com

Navigate

  • Home
  • Current Issue
  • Archive
  • Digital First
  • JAR Best Paper
  • Topics
  • Submit a manuscript
  • Calls for Papers
  • About JAR
  • Subscribe to JAR
  • Pay per view
  • ARF members
  • Meet the Editors
  • ARF and Editorial Review
  • JAR in the News
  • My Folders

Contact us

  • Contact
  • Feedback
  • ARF members

General

  • About the ARF
  • About WARC
  • Rights & Permissions
  • Advertise in JAR
  • Terms of Use