A Hierarchical Marketing Communications Model of Online and Offline Media Synergies

Prasad A. Naik and Kay Peters

Journal of Interactive Marketing, 2009, vol. 23, issue 4, 288-299

Abstract: We propose a new hierarchical model of online and offline advertising. This model incorporates within-media synergies and cross-media synergies and allows higher-order interactions among various media. We derive the optimal spending on each medium and the optimal total budget. We also develop three hypotheses on the effects of within- and across-media synergies on both the total budget and its allocation. We estimate media effectiveness as well as the within- and cross-media synergies of offline (television, print, and radio) and online (banners and search) ads using market data for a car brand. We show that both types of synergies —within-media (i.e., intra-offline) and cross-media (online-offline)— exist. We show how within- and cross-media synergies boost the total media budget and online spending due to synergies of the online media with various offline media.

Keywords: Optimal allocation; Advertising; Online media; Synergy; Marketing communications budget (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (61)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joinma:v:23:y:2009:i:4:p:288-299

DOI: 10.1016/j.intmar.2009.07.005

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