Economic Growth and Advertising Expenditures in Different Media in Different Countries

Richard van der Wurff, Piet Bakker and Robert Picard

Journal of Media Economics, 2008, vol. 21, issue 1, 28-52

Abstract: Newspaper advertising expenditures depend more strongly on economic development than advertising spent in other media. Gross domestic product (GDP), therefore, predicts ad spending better in countries where newspapers are an important advertising medium. GDP also predicts ad spending better in countries where a larger proportion of GDP is spent on advertising. Intermedia competition, on the other hand, has little impact. In conclusion, the authors propose to distinguish three advertising cultures where ad spending follows economic development in different ways.

Date: 2008
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DOI: 10.1080/08997760701806827

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