The theoretical advertising literature has led to contradictive results. While some authors show the efficiency enhancing role of advertising, others argue that it leads to spurious product differentiation. This paper aims to add to an empirical literature that looks at this fundamental trade off between information and persuasion. We study the impact of live performances on artist popularity in the popular music industry. Because we restrict ourselves to support bands that play as opening acts for much more popular headliners, we can interpret concerts as advertisements for artists. We use a large and rich dataset from the popular online music service last.fm. Micro-level observations of canceled concerts allow us to exploit an unique experiment-like setting to study the causal impact of exposure to live performances on the attendees' listening behavior. We find that even long after giving a concert, artists still enjoy a considerable increase in music plays. This suggests evidence for a permanent (persuasive) change in consumer preferences due to advertising.
|Number of pages||23|
|Publication status||Published - 2014|
|Event||The 41st Annual European Association for Research in Industrial Economics Conference. EARIE 2014 - Milan, Italy|
Duration: 29 Aug 2014 → 31 Aug 2014
Conference number: 41
|Conference||The 41st Annual European Association for Research in Industrial Economics Conference. EARIE 2014|
|Period||29/08/2014 → 31/08/2014|