Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Marketing Science

Ed. by Rao, Ram C.

1 Issue per year


CiteScore 2016: 0.17

SCImago Journal Rank (SJR) 2016: 0.158
Source Normalized Impact per Paper (SNIP) 2016: 0.094

Online
ISSN
1546-5616
See all formats and pricing
More options …

The Unbundling of Advertising Agency Services: An Economic Analysis

Mohammad Arzaghi / Ernst R. Berndt / James C. Davis / Alvin J. Silk
Published Online: 2012-12-03 | DOI: https://doi.org/10.1515/1546-5616.1164

Abstract

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.

Keywords: bundling; ad agency services; commission compensation

About the article

Published Online: 2012-12-03


Citation Information: Review of Marketing Science, ISSN (Online) 1546-5616, DOI: https://doi.org/10.1515/1546-5616.1164.

Export Citation

©2012 Walter de Gruyter GmbH & Co. KG, Berlin/Boston. Copyright Clearance Center

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Daniel H. Weinberg
Journal of Sports Economics, 2016, Volume 17, Number 8, Page 832

Comments (0)

Please log in or register to comment.
Log in