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Spring 2017

AEM 4550: Economics of Advertising
 

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!NEW! Annonymous Survey about Group Work

Syllabus [ pdf ]

 Attendance Tracking

Note of Absence Electronic Form

Assigned Harvard Business Cases

Class Blog (Blogging Guide)
 

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Important dates

Thu, March 2
Thu, March 30
Thu, April 13
Thu, May 9

Exam 1
Exam 2
Project topic and outline due
Mini-Exam, Final paper due


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Course schedule

Date Lecture Topic Readings, Slides, Assignments and other materials
 

January 26

Lecture 1

Introduction, Syllabus

January 31, February 2

Lecture 2, 3

Review of Microeconomic principles applicable to Advertising Analysis:
·        
Price, advertising elasticities
·        
Product differentiation
·        
Dorfman-Steiner Condition

--Advertising to Sales Ratio Data
--Top National Advertisers

Homework 1 (Due February 14)  |  HW1 Spreadsheet
Required reading: The Atlantic Article "Have You Ever Tried To Sell a Diamond?" [ also pdf ]
HW1 Answers  |  HW1 Answer Spreadsheet   |  HW1 Blog Posts

February 7, February 9, February 14

Lecture 4, 5, 6, 7

Product attribute taxonomy:
·        
Search, Experience, Credence

Views on advertising:
·        
The persuasive view
·        
The informative view
·        
The complementary view
·        
Combative advertising
·        
Memory jamming view

 --Luxury Shame
 --Luxury Brands and Social Media

 

 

Homework 2 (Due February 23)
D. Ackerberg "Empirically Distinguishing Informative and Prestige Effects of Advertising"
HW2 Blog Posts

February 16, 23, 28

Lecture 8, Lecture 9.

The direct effects of advertising:
·        
Sales
·        
Brand loyalty and market-share stability
·        
Advertising scale economies
·        
TV advertising industry and CPM
·        
Ad Costs and Scheduling

 

Exam 1 March 2
Exam prep-sheet | Sample exam

March 7,
March 9

Lecture 10, Lecture 11

Advertising Avoidance

Economics of Online Advertising:

·     
Online Advertising Methods
·      
Search advertising pricing
·  
  Cost Per Click vs. Cost Per Action
·    
 Google Advertising
 

-- Google: Predicting the Present

--  Atlantic: Digital Advertising Industry is Watching your Every Click
 

Homework 3 (Due March 16) |  HW3 Spreadsheet
HBS case: “Air France Internet Marketing: Optimizing Google, Yahoo!, MSN, and Kayak Sponsored Search” by 
Mark Jeffery et. al.
Academic article 1: "The Unfavorable Economics of Measuring the Returns to Advertising"
Academic article 2: "Consumer Heterogeneity and Paid Search Effectiveness"

HW3 Answers (spreadsheet) | HW3 Blog Posts

March 16, 21
Lecture 12, 13
Guest Lecture: IBM Analytics and Data

Economics of Digital Advertising


 

--Is your Digital advertising working?

--Ghost ads and measuring ad effectiveness

--Video: Ad auctions
 

March 23

Lecture 14
 

Brand Equity
·   
Importance of Brand Equity
·    
Measuring Brand Equity

 

--in class excercise
--Sample Brand Equity Calculation

March 28

Lecture 15

New directions and other topics:
·         Advertising Content
·        
Comparative Advertising
·        
DTC Advertising
·        
Advertising Regulation

 

Exam 2 March 30
Exam prep-sheet | Sample exam

April 11, 13

Lecture 14

Presentation Prep and Training:
·        Presentation guidelines
·       
Cornell Databases
·       
Excel Tutorial 
·        
Data Analysis

 

 
  • Presentation Prep Slides

Homework 5 (April 18) 
 


Final Presentation and Paper materials:

Presentation and Paper Guidelines and Important Deadlines
Sample Presentations (
Smartphones | Car Rental)
Prime Time Advertising Data
Cornell Mann Library Resources 

 Group Reserved topic Presentation date
Daniel, Mac, Kiley, Christine Cereal April 18 #1
Charlie, Louis, Shaan, Joshua Pharmaceuticals April 18 #2
Megan, Sia, Caitlin, Cristiana Fragrances April 20 #1
Jordan, Marshall Sarah, Dani Beer April 20 #2
Jill, Sam, Kenneth, Julia Soft drinks April 25 #1
Lauren, Kristen, Rachel, Madison Fast food April 25 #2
Jonathan, Georgina, Lucia, June  Auto industry April 27 #1
Stephen, Elizabeth, Christina, Von Wireless providers April 27 #2
Emma, Grace, Mac, Grace Jewelry Stores  May 2 #1
Daniel, Angel, Kupono, Madeline Chocolate May 2 #2
Stefanie, Jessica, Simi, Alya Beauty/cosmetics May 4 #1
Daniel, Arianne, Zining, Reyan Insurance May 4 #2


 

April 21-4

 

Student Presentations

 

May 9

 

Mini-Exam, Final paper is due

 


 

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