Measures of Online Advertising Effectiveness for Market Penetration: The Case of Orange Juice Consumers

Abstract

Traditionally, research on the impacts of generic advertising on food demand has focused on television advertising and in‐store promotions. However, with the an increased use of advertising using social media, such as online banner advertisements, there is a need for investigation to determine whether online advertising has a similar impact as television advertising. We investigate the factors related to both the awareness and impact of online and television advertisements on the frequency of orange juice consumption. A negative time trend is found with regard to awareness of both online and television advertising. The relationship between awareness of orange juice advertisements and frequency of consumption is somewhat surprising. The major surprise is the lack of relationship between online advertising and consumption frequency. Only awareness of online Facebook advertisements is positively related to the number of days per week orange juice is consumed. The lack of relationship with awareness of television advertisements, which at first may be surprising is reflected in a recent decision by the Florida Department of Citrus, which is responsible for the funding and placement of orange juice advertisements, to no longer invest in television advertising. Additional research on whether or not online advertisements are proving ineffective is needed.