Cross-Media Effects

Investigating the role of Email, Catalog, Television, and Radio in a Multichannel Marketing Environment

Sridhar, Kumar, & Bezawada — Marketing Letters (2022)

Introduction & Research Gap

The Context

  • Digital ad spending surpassed traditional in 2019 (US retail: 48% internet/mobile vs. 27% TV, 14% catalog)
  • Traditional media (TV) remains relevant due to synergy with personalized media
  • The Gap: Literature lacks integrated analysis of how Personalized and Mass media interact in a multichannel environment

Research Objective

“Disentangle the direct and cross-media effects of four specific outlets on purchase behavior across online and offline channels.”

  • Personalized: Email, Catalog
  • Mass Media: Television, Radio

Methodology

Data Sources

  • Scanner Panel Data: Unique dataset capturing actual individual-level consumer purchases
  • Marketing Database: Detailed firm-level history of exposure to multiple media
  • Covers both Online and Offline (in-store) shopping incidences

Econometric Approach

  • Developed model to capture joint effects and interactions
  • Copula Method: Addressed endogeneity from consumer self-selection and firm targeting bias
  • Controls: Factored in price and sales promotions as confounding variables

Key Findings: Media Elasticities

Variable Online Effect Offline Effect Primary Impact
Email 0.0628*** 0.0211* E-commerce Driver
Catalog 0.0342** 0.0573*** Omnichannel Driver
Television 0.0381** 0.0707*** Strong In-Store Driver
Radio 0.0094 (ns) 0.0152** Local Store Traffic

Synergy Observation: Ignoring cross-media effects leads to understating personalized media and overstating mass media impact.

Strategic Insights

Cognitive Overload

Exposure to too many personalized media types simultaneously (e.g., both Email and Catalog) may reduce effectiveness due to consumer information fatigue.

Channel Priorities

  • For Online Sales: Reach for Email and digital promotion
  • For Offline Sales: Prioritize Catalogs and Television ads

The Role of Catalogs

While often seen as “old school,” catalogs are highly effective omnichannel tools, showing stronger offline impact than email and significant online spillover.

Mass Media’s Role

Television remains a powerful anchor for driving high-volume offline traffic, often serving as a foundation for personalized campaigns.

Implications for Managers

Theoretical Implications

  • Attribution Accuracy: Models must account for cross-media interactions to avoid biased ROI measurements
  • Media Interaction: When mass media is present, the relative “dominance” of email for offline traffic decreases

Managerial Recommendations

  • Holistic Budgeting: Assess all campaign components simultaneously rather than in isolation
  • Balancing Act: If increasing Email frequency, consider decreasing other personalized media (Catalogs) to avoid consumer burnout
  • Leverage Synergies: Sync mass media (TV) with personalized follow-ups to maximize offline foot traffic