TY  - JOUR
A1  - Bayer, Emanuel
A1  - Srinivasan, Shuba
A1  - Riedl, Edward J.
A1  - Skiera, Bernd
T1  - The impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value
T2  - International journal of research in marketing
N2  - This research examines the impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value. Using proprietary data on annualized advertising expenditures for 1651 firms spanning seven years, we document that both display advertising and paid search advertising exhibit positive effects on firm performance (measured by sales) and firm value (measured by Tobin's q). Paid search advertising has a more positive effect on sales than offline advertising, consistent with paid search being closest to the actual purchase decision and having enhanced targeting abilities. Display advertising exhibits a relatively more positive effect on Tobin's q than offline advertising, consistent with its long-term effects. The findings suggest heterogeneous economic benefits across different types of advertising, with direct implications for managers in analyzing advertising effectiveness and external stakeholders in assessing firm performance.
KW  - Advertising
KW  - Display advertising
KW  - Paid search advertising
KW  - Offline advertising
KW  - Sales
KW  - Firm value
Y1  - 2020
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/77701
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-777019
SN  - 0167-8116
VL  - 37
IS  - 4
SP  - 789
EP  - 804
PB  - Elsevier
CY  - Amsterdam
ER  -