Where to present the advertisement in a block

Abstract

It is expected that a commercial is more effective if the audience are exposed to it when the break starts. This study investigates whether the first presented advertisement in a block is more effective than the subsequent ads or not and how the order of a commercial in a block affects the impact of the commercial. The impact of advertisement is measured by means of incoming calls at a national call center. The data cover 31 months. During this time period, 5,172 radio commercials are broadcasted and a total number of 261,167 incoming calls are recorded. In this study, a logarithmic distributed lag model is estimated. Differential effects of the radio channel, time of broadcast, commercial duration and order of a commercial in a block are estimated. The main focus of the paper is to investigate how the place of a commercial in a block affects the advertisements’ impact. Keywords: Order effect, sequence effect, advertising effectiveness, advertising response model, distributed lag model JEL Classification: M31, M37