The impact of competition on various aspects of firm behavior in general and on advertising strategy in particular has been heavily investigated. For instance, existing literature streams explore advertising timing, determining that ad pulsing in-sync with competitors is a dominant and profitable form of advertising incidence. A substantial body of literature also explores the relative usage of persuasive and informative advertising. The nature of differentiation has been shown to determine which approach is more helpful to attract consumers in the competitive market. However, little empirical research has been performed to compare competitors’ ad strategies beyond timing.
This study assesses how the type of competition in a market affects advertising content and design of print advertisements. More specifically, this study considers the role of competition intensity and analyzes both the timing and content of advertising campaigns of firms competing in the same product market. We derive various managerial implications to be considered when defining an advertising strategy.
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