Global Advertising Costs Diversification Model

Abstract

Diversification of global spending on advertising is a vivid example of the rapid development of globalization because this diversification should be seen as an expansion of new types of information products into the global market. As a whole, such changes are a new trend in the global economy, balancing between pragmatic approaches to production, new consumer psychology, and growing creativity in the reproduction process. At the same time, numerous behavioral factors are increasingly affecting the formation of consumers’ tastes and preferences and, ultimately, the elasticity of demand for certain goods or services. Thus, many issues directly relate to the audience targeting, production location, sales, advertising budgeting, as well as the form, time, placement in the media, or social media. This problem may be overcome by using the modern econometric mechanism, in particular, the approximation of the time series of global advertising costs and expenses according to Verhulst’s s-shaped curve. Finding the interval of elasticity of the time series is also important. However, studies in this area must determine the diversification conditions of global digital advert costs, which will eventually clearly forecast the development of the global advertising market.