Assessing Advertising Efficiency

Abstract

This research focuses on a major concern for marketers addressing the claims of inefficiency of spending on advertising. We examine whether the Internet can help increase overall advertising efficiency. Using a sample from the Spanish automobile industry, we combine a nonparametric method—Data Envelopment Analysis—with recent important insights from statistics and econometrics studies, and find that online advertising improves the efficiency levels and that this effect is more pronounced in the long-term temporal framework.