Skip to main content Accessibility help
×
Home

TARGETED ADVERTISING IN THE BREAKFAST CEREAL INDUSTRY

  • JOSHUA BERNING (a1) and ADAM N. RABINOWITZ (a2)

Abstract

We examine the relationship of product characteristics of ready-to-eat breakfast cereal and targeted television advertising to specific consumer segments. We compile a unique data set that includes brand-packaging characteristics, including on-box games, nutrition information, and cobranding. We find that the relationship of television advertising and a cereal's brand-packaging characteristics varies by target audience. Our results provide insight into understanding how manufacturers strategically utilize branding, packaging, and television advertising. This can help industry and policy makers develop food product advertising policy. This analysis extends to other product markets where extensive product differentiation and promotion are present as well.

  • View HTML
    • Send article to Kindle

      To send this article to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about sending to your Kindle.

      Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

      Find out more about the Kindle Personal Document Service.

      TARGETED ADVERTISING IN THE BREAKFAST CEREAL INDUSTRY
      Available formats
      ×

      Send article to Dropbox

      To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Dropbox.

      TARGETED ADVERTISING IN THE BREAKFAST CEREAL INDUSTRY
      Available formats
      ×

      Send article to Google Drive

      To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Google Drive.

      TARGETED ADVERTISING IN THE BREAKFAST CEREAL INDUSTRY
      Available formats
      ×

Copyright

This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.

Corresponding author

*Corresponding author's e-mail: jberning@uga.edu

Footnotes

Hide All

This research received support from the University of Connecticut's Food Marketing Policy Center and the Zwick Center for Food and Resource Policy. We appreciate the help of Baxter Panola, Elena Castellari, Rui Huang, Hualu Zheng, and Chen Zhu on this project. We received useful comments from seminar participants at the Agricultural and Applied Economics Association Annual Meeting in Seattle, Washington, and the University of Georgia. All errors are solely the authors. This research was previously titled “Does Breakfast Cereal Advertising Target Young Children?”

Footnotes

References

Hide All
Anand, B.N., and Shachar, R.. “Targeted Advertising as a Signal.” QME 7,3(2009):237–66.
Andreyeva, T., Kelly, I.R., and Harris, J.L.. “Exposure to Food Advertising on Television: Associations with Children's Fast Food and Soft Drink Consumption and Obesity.” Economics & Human Biology 9,3(2011):221–33.
Aoki, J.R., and Moore, E.S.. “Self-Regulation as a Tool for Promoting Healthier Children's Diets: Can CARU and the CFBAI Do More?Advances in Communication Research to Reduce Childhood Obesity. Williams, J.D., Pasch, K.E., and Collins, C.A., eds. New York: Springer, 2013, pp. 119–51.
Beales, J.H., III, and Kulick, R.. “Does Advertising on Television Cause Childhood Obesity? A Longitudinal Analysis.” Journal of Public Policy & Marketing 32,2(2013):185–94.
Berning, J.P., Chouinard, H.H., and McCluskey, J.J.. “Identifying Consumer Preferences for Nutrition Information on Grocery Store Shelf Labels.” Food Policy 35,5(2010):429–36.
Berning, J.P., Huang, R., and Rabinowitz, A.. “An Evaluation of Government and Industry Proposed Restrictions on Television Advertising of Breakfast Cereals to Children.” Journal of Consumer Policy 37,4(2014):507–25.
Berning, J., and McCullough, M.. “Advertising Soft Drinks to Children: Are Voluntary Restrictions Effective?Agribusiness 29,4(2013):469–85.
Chandra, A.Targeted Advertising: The Role of Subscriber Characterisics in Media Markets.” Journal of Industrial Economics 57,1(2009):5884.
Chandra, A., and Kaiser, U.. “Targeted Advertising in Magazine Markets and the Advent of the Internet.” Management Science 60,7(2014):1829–43.
Desrochers, D.M., and Holt, D.J.. “Children's Exposure to Television Advertising: Implications for Childhood Obesity.” Journal of Public Policy & Marketing 26,2(2007):182201.
Dhar, T., and Baylis, K.. “Fast-Food Consumption and the Ban on Advertising Targeting Children: The Quebec Experience.” Journal of Marketing Research 48,5(2011):799813.
Federal Trade Commission. A Review of Food Marketing to Children and Adolescents: Follow-Up Report. Washington, DC: Federal Trade Commission, 2012. Internet site: https://www.ftc.gov/sites/default/files/documents/reports/review-food-marketing-children-and-adolescents-follow-report/121221foodmarketingreport.pdf (Accessed March 7, 2017).
Feinberg, F.M.Pulsing Policies for Aggregate Advertising Models.” Marketing Science 11,3(1992):221–34.
Frazier, W.C. III, and Harris, J.L.. “Trends in Television Food Advertising to Young People: 2015 Update.” Rudd Brief, Storrs: University of Connecticut Rudd Center for Food Policy & Obesity, 2016.
Geylani, T., Inman, J.J., and Ter Hofstede, F.. “Image Reinforcement or Impairment: The Effects of Co-branding on Attribute Uncertainty.” Marketing Science 27,4(2008):730–44.
Goettler, R.L.Advertising Rates, Audience Composition, and Competition in the Network Television Industry.” Working paper, Chicago, IL: University of Chicago, 2012.
Goldfarb, A., and Tucker, C.. “Online Display Advertising: Targeting and Obtrusiveness.” Marketing Science 30,3(2011a):389404.
Goldfarb, A., and Tucker, C.. “Privacy Regulation and Online Advertising.” Management Science 57,1(2011b):5771.
Huang, R., and Yang, M.. “Buy What Is Advertised on Television? Evidence from Bans on Child-Directed Food Advertising.” Journal of Public Policy & Marketing 32,2(2013):207–22.
Iyer, G., Soberman, D., and Villas-Boas, J.M.. “The Targeting of Advertising.” Marketing Science 24,3(2005):461–76.
Jargon, J. “Success Is Only So Sweet in Remaking Cereals.” Wall Street Journal, October 11, 2011, B1.
Johnson, J.P.Targeted Advertising and Advertising Avoidance.” RAND Journal of Economics 44,1(2013):128–44.
Kelly, K.J., Slater, M.D., Karan, D., and Hunn, L.. “The Use of Human Models and Cartoon Characters in Magazine Advertisements for Cigarettes, Beer, and Nonalcoholic Beverages.” Journal of Public Policy & Marketing 19,2 (2000):189200.
Lee, M., Choi, Y., Quilliam, E.T., and Cole, R.T.. “Playing with Food: Content Analysis of Food Advergames.” Journal of Consumer Affairs 43,1(2009):129–54.
Mallinckrodt, V., and Mizerski, D.. “The Effects of Playing an Advergame on Young Children's Perceptions, Preferences, and Requests.” Journal of Advertising 36,2(2007):87100.
McGinnis, J.M., Gootman, J.A., and Kraak, V.I., eds. Food Marketing to Children and Youth: Threat or Opportunity? Washington, DC: National Academies Press, 2006.
Nelson, J.P.Alcohol Advertising in Magazines: Do Beer, Wine, and Spirits Ads Target Youth?Contemporary Economic Policy 24,3(2008):357–69.
Nelson, J.P., and Young, D.J.. “Effects of Youth, Price, and Audience Size on Alcohol Advertising in Magazines.” Health Economics 17,4(2008):551–56.
Nevo, A. “ Measuring Market Power in the Ready-to-Eat Cereal Industry.” Econometrica 69,2(2001):307–42.
Ogden, C.L., Carroll, M.D., and Kit, B.K.. “Prevelance of Childhood and Adult Obesity in the United States, 2011–2012.” JAMA 311,8(2014):806814.
Rao, A.R., Qu, L., and Ruekert, R.W.. “Signaling Unobservable Product Quality through a Brand Ally.” Journal of Marketing Research 36,2(1999):258–68.
Rao, A.R., and Ruekert, R.W.. “Brand Alliances as Signals of Product Quality.” Sloan Management Review 36,1(1994):8797.
Schwartz, M.B., Ross, C., Harris, J.L., Jernigan, D.H., Siegel, M., Ostroff, J., and Brownell, K.D.. “Breakfast Cereal Industry Pledges to Self-Regulate Advertising to Youth: Will They Improve the Marketing Landscape?Journal of Public Health Policy 31,1(2010):5973.
Simon, H.ADPULS: An Advertising Model with Wearout and Pulsation.” Journal of Marketing Research 19,3(1982):352–63.
Zywicki, T.J., Holt, D., and Ohlhausen, M.. “Obesity and Advertising Policy.” George Mason University Law Review 12,4(2004):9791011.

Keywords

Metrics

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed