Nerd Alert: Advertising’s Impact on Stock Price

Welcome to Nerd Alert, a series of special episodes bridging the gap between marketing academia and practitioners. We’re breaking down highly involved, complex research into plain language and takeaways any marketer can use.

In this episode, Elena and Rob explore how advertising can impact stock prices and boost investor confidence. Research shows successful campaigns often lead to higher stock values by showcasing a company's market presence and consumer demand.

Topics covered:   

• [00:50] “The Impact of Advertising on a Company’s Stock Price”
• [02:10] Stock price is a good metric for judging company success
• [03:20] Advertising decisions for customers vs investors
• [04:50] Do investors recognize the future impact of marketing actions?
• [08:10] Stock price movement benefits and drawbacks
• [09:30] Afterthoughts on the study and TV Advertising 

To learn more, visit marketingarchitects.com/podcast 

Resources: 
Srinivasan, Shuba and Hanssens, Dominique M, The Impact of Advertising on a Company’s Stock Price (September 8, 2023). Available at SSRN: https://ssrn.com/abstract=4694164 or http://dx.doi.org/10.2139/ssrn.4694164 

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