Title: Advertising and Brand Attitudes: Evidence from 575 Brands over Five Years,
Abstract: Little is known about how different types of advertising affect brand
attitudes. We investigate the relationships between three brand attitude
variables (perceived quality, perceived value and recent satisfaction) and
three types of advertising (national traditional, local traditional and
digital). The data represent ten million brand attitude surveys and $264
billion spent on ads by 575 regular advertisers over a five-year period,
approximately 37% of all ad spend measured between 2008 and 2012. Inclusion of
brand/quarter fixed effects and industry/week fixed effects brings parameter
estimates closer to expectations without major reductions in estimation
precision. The findings indicate that (i) national traditional ads increase
perceived quality, perceived value, and recent satisfaction; (ii) local
traditional ads increase perceived quality and perceived value; (iii) digital
ads increase perceived value; and (iv) competitor ad effects are generally
negative.