The Unbundling of Advertising Agency Services: An Economic Analysis
We address a puzzle surrounding the shift from bundling to unbundling of U.S. advertising agency services and the slow pace of change over several decades. We model an agency’s decision as a tradeoff between the fixed cost to the advertiser of establishing a relationship with an agency and pecuniary economies of scale from media services provision. Using micro-data from the U.S. Census of Services for 1982-2007, we find agencies are more likely to unbundle with increasing size, diversification and higher media prices, and less likely with increasing age, larger media volume, and an interaction between media prices and volume.
Year of publication: |
2012
|
---|---|
Authors: | Mohammad, Arzaghi ; Berndt Ernst R. ; Davis James C. ; Silk Alvin J. |
Published in: |
Review of Marketing Science. - De Gruyter, ISSN 1546-5616. - Vol. 10.2012, 1, p. 1-55
|
Publisher: |
De Gruyter |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
The Unbundling of Advertising Agency Services: An Economic Analysis
Mohammad, Arzaghi, (2012)
-
Holding Company Cost Economies in the Global Advertising and Marketing Services Business
Silk Alvin J., (2004)
-
The Internalization of Advertising Services: An Inter-Industry Analysis
Sharon, Horsky, (2012)
- More ...