Title

Impact of celebrities in advertising campaigns

Document Type

Poster Presentation

Publication Date

4-26-2019

Department

Communication/Journalism

Abstract

This study explored the impact of celebrity-led advertising campaigns on revenue of athletic apparel companies. Such campaigns can be expensive, and estimates of their return on investment are therefore important. Because the costs of advertising are typically proprietary, proxies for these costs were used. Because advertising campaigns create “buzz” surrounding a product or company, Google Trends can be used to identify likely campaign dates. Further searching of the events of that time identified the presence or absence of a celebrity campaign, and this was used as a proxy for advertising costs. These proxies were then compared to quarterly revenues as reported to Securities and Exchange Commission. Other events (e.g., misconduct of celebrities involved, major sporting events during the time of the campaign) may also have contributed to revenues. Hence, multiple regression and time series analyses were used to determine the effectiveness of these campaigns.

Comments

Presented at the Eighth Annual Conference of the Upstate Chapters of the American Statistical Association in Rochester, New York, April 26-27, 2019.

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