Advertising Spending Efficiency of Beauty-Care Product Companies: Comparison Between Local Companies and Multinational Companies in the U.S. Market |
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Authors: | Lan Ye Yunjae Cheong |
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Institution: | 1. Department of Advertising and Public Relations , The University of Alabama , Tuscaloosa , Alabama , USA;2. Division of Media Communication, Hankuk University of Foreign Studies , Seoul , Republic of Korea |
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Abstract: | ABSTRACT In this study, the authors apply data envelopment analysis (DEA) to evaluate the financial efficiency of U.S. beauty-care companies and foreign companies based on their media advertising expenditures in eight key media outlets (i.e., magazines, newspapers, outdoor, network TV, spot TV, syndication TV, cable TV, and radio) and their revenues in the U.S. market. The analyses revealed that 47.4% of the companies examined advertised efficiently. Companies that advertised inefficiently could save, on average, 75% of their advertising spending. The results also indicated that although U.S. companies are more efficient overall than are non-U.S. companies in terms of advertising spending, the competitiveness of non-U.S. companies should not be underestimated because some of them advertised efficiently (e.g., Kao Corporation from Japan) or almost efficiently. |
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Keywords: | Beauty-care product advertising local companies multinational companies |
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