The market for mobile phones has increased substantially. In an attempt to maintain or increase their market share, mobile phone companies invest a significant amount of their budget on advertising. In this paper, we analyze TV advertising lifetime data of five mobile phone companies in Korea. We identify the distribution of advertising lifetime and model the median life as a function of company-specific fixed effects, type of advertising, the number of new customers signed for the service, and the number of new advertisements placed by the competitors. We show how the fitted lifetime model can be applied to advertising policy such as switching time for new advertisement.
All Science Journal Classification (ASJC) codes
- Strategy and Management
- Management Science and Operations Research
- Information Systems and Management