Liquor advertising and consumption in the United States: 1971-2008

Gary B. Wilcox, Kyungok Kacy Kim, Heather M. Schulz

Research output: Contribution to journalReview articlepeer-review

10 Scopus citations


Using time-series analyses, this manuscript examines the relationship between liquor advertising expenditures and consumption in the US from 1971 to 2008 on both the aggregate and brand levels. The 40-year time period examined is especially interesting because it included a decade in which the liquor industry ended a voluntary ban of advertising on electronic media. The results of the analysis revealed that advertising expenditures for liquor were not significandy related to consumption at the aggregate level; but for three of the brands examined here, electronic advertising exhibited a significant, positive relationship with brand consumption. From a theoretical perspective, the findings are consistent to those found in the cigarette and soft drink markets - minimal or no effects of advertising are present at the aggregate level, but brand advertising effects were discovered at the brand and/or market share level. From a public policy perspective, the findings presented here support the current positions of both the US liquor industry as well as the Federal Trade Commission - companies have the right to truthfully advertise their legal product in any medium.

Original languageEnglish (US)
Pages (from-to)819-834
Number of pages16
JournalInternational Journal of Advertising
Issue number4
StatePublished - 2012

ASJC Scopus subject areas

  • Communication
  • Marketing


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