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Boost Movie Ticket Sales by Location-Based Advertising: A Bayesian VAR Approach

ABSTRACT Compared to previous research studying movie advertising focusing on traditional advertising, this study introduce location-based ads (LBA), an important new media advertising, to raise limited coverage of traditional movie advertising. This study explores the role of LBA in generating ticket sales dynamically and compares it with that of pop-up window ads (PWA). Using daily aggregate cinema sales data on about three million consumers, developed time-series models reveal that (a) LBA can affect ticket sales in short and long terms, and its sales impact can last for 9 days across audience segments; (b) compared to low involvement audience segments, sales impact of LBA is 15 times larger for high involvement audience segment in long term; (c) ticket sales impact of LBA are cumulatively 3 times and 47 times stronger than those of PWA in low involvement audience segment and high involvement audience segment, respectively.