Advertising · Firm-level econometric analysis of advertising mix and performance
The Impact of Online Display Advertising and Paid Search Advertising Relative to Offline Advertising on Firm Performance and Firm Value
International Journal of Research in Marketing · 2020
Summary
Paid search had a more positive effect on sales than offline advertising, while display advertising had a relatively more positive effect on Tobin's q than offline advertising, consistent with different short- and long-run economic roles.
For your marketing
Possible founder application
Separate near-term sales objectives from longer-horizon brand or firm-value goals when comparing channels. Treat the study as context for measurement choices, not a universal channel ranking.
Reported result
What the study found
Paid search had a more positive effect on sales than offline advertising, while display advertising had a relatively more positive effect on Tobin's q than offline advertising, consistent with different short- and long-run economic roles.
Research question
What the authors investigated
How do paid search and online display advertising relate to firm performance and firm value compared with offline advertising?
Design
The authors compare the economic effects of online display, paid search and offline advertising using firm-level performance and valuation outcomes.
Sample and setting
Firms with observed online and offline advertising and financial outcomes; the abstract reviewed does not provide the sample size or specific industries.
Scope and transfer
Limitations to keep in view
Firm-level estimates from the study's period and sample; they do not establish causal effects for a particular startup's campaign or current ad market. Sales and firm value are distinct outcomes.
Research sources
International Journal of Research in Marketing publisher abstract and DOI metadata.