Valuation of various media advertising expenditures - UK perspective

This study empirically investigates the potential differential media advertising valuation effects for a sample of UK firms over the period 1998-2003. Contrary to the findings of previous research, this study could not find evidence that the valuation relevance of advertising varies substantially with the type of medium used to communicate it. The overall results of this study show a positive and significant association between different measures of advertising expenditures and the market value of the firm. All in all, this paper should help to understand better the extent to which different media advertising investments play a role in firm valuation in the UK market and enhance an advertiser's capacity to plan for and make optimal use of alternative media.