The effect of advertising on the market value of firms: Empirical evidence from the Super Bowl ads

Abstract

As integrated marketing communications increasingly emerge as the focus of corporate communication efforts, companies have grown to realise that consumers are not their only target audience. Rather, there are many stakeholder groups that also need to be targeted with the company messages. This research examines some of the important stakeholders — investors — and their perception of a company’s advertising as reflected in the stock price performance at certain peak advertising periods. Using standard event-study methods with the sample focusing on selected companies and their Super Bowl ads, this study found a significantly different stock price performance (compared to that of the prior periods) for the companies that advertised.