Watch the Super Bowl and buy some stocks?

Feb 05, 2010

Rice professors say publicly traded companies can expect increase in stock sales after big ad buys.

It is commonly known that companies spend millions of dollars on advertising to increase general awareness, introduce new product lines, build on their brands and sell products and services, but professors at Rice University's Jones Graduate School of Business say such high-profile advertising provides another result that is not so well-known: Publicly traded companies who invest in big ad buys like the Super Bowl see a spike in their being traded, even if they're not advertising a consumer product.

"We're fairly certain that the publicly traded companies advertising on Sunday's will see a spike in stock purchases," said James Weston, an associate professor of management and co-author of the study "Advertising, Breadth of Ownership and ."

Weston, along with Rice colleagues Gustavo Grullon and George Kanatas, said the increase in common-stock trading will come from the "everyday" person and not serious investors.

"People buy on impulse and on recognition," Weston said. "With more and more online trading taking place, companies that spend money on big advertising campaigns see this additional benefit from their investment."

Explore further: Consumer loyalty driven by aesthetics over functionality

add to favorites email to friend print save as pdf

Related Stories

Stock Price Correlated to Likeability of Super Bowl Ads

Jan 26, 2009

(PhysOrg.com) -- When TV viewers like a company's Super Bowl commercial, the company's stock price goes up, according to a study by researchers at the University at Buffalo School of Management and Cornell University.

Recommended for you

Fewer lectures, more group work

12 minutes ago

Professor Cees van der Vleuten from Maastricht University is a Visiting Professor at Wits University who believes that learning should be student centred.

How to teach all students to think critically

52 minutes ago

All first year students at the University of Technology Sydney could soon be required to take a compulsory maths course in an attempt to give them some numerical thinking skills. ...

Consumer loyalty driven by aesthetics over functionality

17 hours ago

When designing a new car, manufacturers might try to attract consumers with more horsepower, increased fuel efficiency or a lower price point. But new research from San Francisco State University shows consumers' loyalty ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.