How Consumers’ Media Usage Influences the Advertising Media Mix that Maximizes Campaign Recognition

Abstract

Advertisers have to decide on the total amount of an advertising campaign budget and how to allocate this budget across media. Despite its relevance to advertisers and media planners, research on the optimal allocation of advertising budgets across different media is lacking(Schultz, Block and Raman, 2012). The present study’s first objective is to fill this void by investigating how advertising campaign recognition is affected by total campaign budget and by its allocation across print magazine and television advertising. Our second objective is to investigate whether and how the optimal allocation of media-mix investments is moderated by consumers’ media consumption. As suggested by several authors, we study media usage intensity at the individual level (Enoch and Johnson, 2010; Hallward, 2008; Hung, Gu and Tse, 2005; Pilotta and Schultz, 2005; Schultz, Block and Raman, 2012; Wang, 2006; Wendel and Dellaert, 2005).