RT Journal Article
SR Electronic
T1 The Optimal Advertising-Allocation Rules For Sequentially Released Products
JF Journal of Advertising Research
JO J Advert Res
FD WARC
SP JAR-2017-039
DO 10.2501/JAR-2017-039
A1 Lim, Jooseop
A1 Li, Tieshan
YR 2017
UL http://www.journalofadvertisingresearch.com/content/early/2017/10/05/JAR-2017-039.abstract
AB This study investigates the optimal advertising-allocation rules for sequentially released products. The authors used both analytical and empirical approaches to derive and validate the rules using theatrical prerelease, postrelease, and DVD advertising and sales data in the movie industry. Theatrical prerelease advertising increased when there was a strong prerelease advertising effect on the opening box office or a strong carryover effect on DVDs through the opening box office. The optimal allocation percentages are proposed on the basis of the estimated parameters of the empirical analysis. A simulation study proposes likely improvements in revenues for 74 percent of the titles with optimal rules.