In this age of brevity and fragmented media outlets, the question is raised if increased advertising actually causes consumers to spend more. This research paper will examine the effect of media spending on a company’s net sales and explore if advertising is effective in today’s age.
The methodology for this paper involves the examination of the six leading companies: Johnson & Johnson, McDonalds Corp., PepsiCo Inc., Procter & Gamble Co., Wal-Mart Stores Inc., and Walt Disney Co. over a time period of 18 years from 1994 to 2011.
Data on each of these six companies’ total media spending along with the personal consumption expenditure, unemployment rate, growth in GDP, and average credit card interest rates is compared to their net sales. This is done to determine which variables have a significant impact on a company’s net sales, looking specifically at media spending.
Yeung, Julia, "Advertising and Consumer Spending in the Digital Age" (2013). Honors College Theses. 121.