Internet Adoption and Advertising Expenditures on Traditional media: An Empirical Analysis Using a Panel of Countries

摘要

The Internet can affect advertising expenditures through various channels. This paper quantifies the relationships between Internet adoption and changes in advertising expenditures on traditional offline media types. I use a panel of 11 years of data at the country level that contains information on advertising expenditures by medium and Internet penetration for more than 80 countries. I find that increases in Internet penetration are negatively correlated with changes in advertising expenditures on newspapers, magazines, and television, but I do not find conclusive results for the correlation between Internet adoption and changes in advertising expenditures on radio.