1. Advertising Bans
and the Substitutability of Online and Offline Advertising

2. Alcohol

3. Problem?
Has the growth of the internet reduced the effectiveness
of government regulations on offline advertisement?

4. Awareness of product
Government regulations on
offline advertisements
Effectiveness of alcoholic
campaign
Internet advertising
/exposure

5. =
8% less likely to purchase alcoholic products
THEORETICAL FRAMEWORK
Offline alcoholic advertising bans

6. =
Only 3% less likely to purchase alcoholic products
THEORETICAL FRAMEWORK
After online Ad exposure

7. Made
Robust
Systematic differences
do not provide an
alternative explanation
for the results

8. Literature
Review
•
State Alcohol Advertising Laws
•
Out-of-Home Alcoholic
Advertising: A 21st century
Guide to Effective Regulation
•
Individual state’s liquor control
Web site
Contribution to existing
studies
o First study to empirically investigate
consumer substitution between offline
and online advertising
o Expands the framework with which to
understand the effectiveness of online
advertising

9. Experiment Method
。

10. The questions below ask about how likely you are to buy a
product. Choose the most appropriate number for each
product, using the scale below.
Product
1.Shower
2.Shampoo
3.Soap
4.Alcohol
5.Coffee
6.Ice Cream
Very
Unlikely
1
Unlikely
Neutral
Likely
2
3
4
the
Very
Likely
5

11. Experiment
Natural Experiment
Field Environment
Conceal
Control

12. 61,580
U.S. 275
Web users
Campaigns

13. RESULTS
Exposed to Online Alcohol
Advertisement
Out-of-Home
Advertising Ban
No
No
28.88
Yes
26.84
Yes
2.13
3.34
31.01
30.18
Percentages
of respondents who say
they are likely
to purchase

14. Awareness of product
Government regulations on
offline advertisements
Effectiveness of alcoholic
campaign
Internet advertising
/exposure

15. No
Systematic
Difference

16. Why Second Test?
In order to improve the robustness of test 1, the researchers
conducted a wide battery of tests to verify the effects of systematic
differences.

17. WHAT?
Advertisement
Effectiveness
Recruitment
Rate
Horizontal
Alcohol consumption___
Alcohol Abuse_____________
State
Characteristics
_______Average age
Alternative state regulation______
____________Gender
Demographics ____________Income
______Hours spent in Internet

18. No statistically
significant difference

19. WHAT?
Repeal of a law that
restrict the alcohol
advertising in student
newspaper
Pennsylvania
Enactment of a ban
Philadelphia
Vertital
Changes in Local
Advertising Regulations
San
Francisco
Toughening of regulation
New
York
Loosening of liquor
advertisement in television

20. RESULTS
Ban
Effectiveness of
Online advertising

21. Internet allows companies and consumers to avoid offline restrictions
Combine
online and offline
When one media channel is blocked, alternative options become more effective
campaigns
Online advertising effectiveness cannot be considered separately and feasibility of offline
advertising
Managerial Relevance
In this study, Alcohol ads in places with bans were not judged as more noticeable because
they were unusual, but because the message was more effective
Internet advertising substitutes for offline advertising because it is more effective
Know what is more effective before spending budget
Substitutability of
Online and Offline
Advertising

22. 。
THANKS!