Measuring the Efficiency of Advertising Media Expenditures for Newspapers and Radio.

This paper analyzes the efficiency of advertising expenditures on four media – TV, the Internet, Newspapers, and Radio – focusing especially on the latter two because of their poor performance as national media for sales effects in previous research (King, Reid, and Morrison 1997; Reid and King 2003). Using Data Envelopment Analysis (DEA), the paper evaluates the advertising practices of the leading 100 U.S. advertisers in 2003, in order to identify best practices and determine the efficiency of the advertising in these four types of media. The results reveal inefficiencies with each medium, relative to the advertisers’ expenditures, and also indicate less efficiency for newspaper and radio advertising for these advertisers than for expenditures on either TV or the Internet. ..PAT.-Conference Proceeding [ABSTRACT FROM AUTHOR]