An Economic Perspective on the Information Content of Magazine Advertisements

Numerous researchers have examined the information content of advertising. Most studies indicate that product category profoundly affects information content. This paper builds on previous research by applying Nelson's search-experience classification of product categories to examine the impact of product type on the information content of magazine advertisements. The results support Nelson's framework, but primarily for price, quality and availability information cues. The most surprising result is the high information content for experience durable goods.