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Articles

Boost Movie Ticket Sales by Location-Based Advertising: A Bayesian VAR Approach

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Pages 125-138 | Published online: 25 Aug 2016
 

ABSTRACT

Compared to previous research studying movie advertising focusing on traditional advertising, this study introduce location-based ads (LBA), an important new media advertising, to raise limited coverage of traditional movie advertising. This study explores the role of LBA in generating ticket sales dynamically and compares it with that of pop-up window ads (PWA). Using daily aggregate cinema sales data on about three million consumers, developed time-series models reveal that (a) LBA can affect ticket sales in short and long terms, and its sales impact can last for 9 days across audience segments; (b) compared to low involvement audience segments, sales impact of LBA is 15 times larger for high involvement audience segment in long term; (c) ticket sales impact of LBA are cumulatively 3 times and 47 times stronger than those of PWA in low involvement audience segment and high involvement audience segment, respectively.

Funding

This research was financially supported by supported by the National Natural Science Foundation of China (Grant 71202138, 71472130, 71522010, 71502019), the Youth Foundation for Humanities and Social Sciences of the Ministry of Education of China (Grant 12YJC630045,14YJA630024,14YJC630166), and Sichuan University (Grant skqy201423,skqy201502).

Notes

1 TOPSIS (Technique for Order Performance by Similarity to Ideal Solution) is a well-known method for classical multi criteria decision making with numerous applications, and Fuzzy TOPSIS is an extended version of TOPSIS technique which is based on fuzzy data.

Additional information

Notes on contributors

Zheng Fang

Zheng Fang is a professor of marketing at Sichuan University.

Yang Yang

Yang Yang is an associate professor of marketing at Chengdu University.

Yanyan Xu

Yanyan Xu a postgraduate student.

Wei Li

Wei Li is a professor of marketing at Sichuan University.

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