Comparison Between TV and Digital Advertisements of Fast-Food Chains

Among the major fast-food chains, the mean TV advertising spending is 38 times that of digital advertising spending in 2019. However, TV advertising spending is negatively correlated with the current and future sales, while digital advertising spending is positively correlated. That is, digital advertising spending such as operating social network services is more directly related to the short-term purchase intention of fast-food consumers. Moreover, Hispanic youth reveal different patterns from Black youth or all youth, in terms that their purchase intentions are more directly responsive to TV commercials. In this respect, the increase in Spanish-language TV advertisements constructs a different and separate realm; it is negatively correlated with sales while almost uncorrelated with brand awareness of existing market. Therefore, in principal component analysis, digital spending might be interpreted as a kind of strengthening of existing market power, while Spanish-language TV advertisement would be a sort of a new market penetration. Regarding childhood obesity, digital spending and Spanish-language TV ads should receive more concern to determine appropriate and effective policy responses.