Optimal Seasonal Allocation of Generic Dairy Advertising Expenditures

Escalating media advertising costs have prompted shifts away from advertising to non-advertising promotion activities in the dairy industry’s generic commodity promotion program. As advertising budgets become tighter, determining the optimal allocation of these funds becomes particularly important. Optimal seasonal generic advertising expenditure shares for the national fluid milk and cheese generic advertising programs were estimated, with shares higher in the first and fourth quarters for fluid milk and relatively even across quarters for cheese. Estimates of producer welfare gains from re-allocation were substantial, with average welfare gains of 12 to 24 percent of annual advertising investments.


Issue Date:
2004-02
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/122095
PURL Identifier:
http://purl.umn.edu/122095
Total Pages:
35
Series Statement:
NICPRE Research Bulletin
04-02




 Record created 2017-04-01, last modified 2020-10-28

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