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Optimal Media Allocation of Generic Fluid Milk Advertising Expenditures: The Case of New York State

Published online by Cambridge University Press:  15 September 2016

Diansheng Dong ,
Todd M. Schmit  and
Harry M. Kaiser
Diansheng Dong
Affiliation:
Economic Research Service, U.S. Department of Agriculture, in Washington D.C.
Todd M. Schmit
Affiliation:
Department of Applied Economics and Management at Cornell University in Ithaca, New York
Harry M. Kaiser
Affiliation:
Department of Applied Economics and Management at Cornell University in Ithaca, New York
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Abstract

A fixed-effects panel data demand model for five New York State markets is estimated to determine the differential impacts of generic fluid milk advertising by media type. Empirical results indicate that among the four media outlets, television advertising has the largest impact on per capita demand, followed by radio, outdoor, and print. Based on the estimated media-specific elasticities, media reallocation of advertising expenditures suggests that milk sales could increase significantly. The results indicate that cooperative media plan strategies developed between the New York regional advertising program and the national advertising programs would achieve the greatest benefits.

Keywords

generic advertisingmilkoptimal media allocationpanel data
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 36 , Issue 2 , October 2007 , pp. 253 - 266
Copyright
Copyright © 2007 Northeastern Agricultural and Resource Economics Association 

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