ALCOHOL ADVERTISING IN MAGAZINES: DO BEER, WINE, AND SPIRITS ADS TARGET YOUTH?

Jon Nelson

Contemporary Economic Policy, 2006, vol. 24, issue 3, 357-369

Abstract: In 2003, the alcohol beverage industry spent more than $1.6 billion on advertising, including $394 million on ads in magazines. Critics allege that these activities target adolescents. This article examines count data for alcohol ads placed in 28 magazines in 2001–03. Specifying a demand function for advertising space, regressions are estimated that are conditioned on magazine characteristics and readership demographics, including the percent of youth in the audience. The explanatory variables include real prices of advertisements and audience size. Results indicate significant effects for price, audience size, and adult demographics, but fail to support claims that advertisers target youth. (JEL L82, L66, M37)

Date: 2006
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