Utility Advertising After Deregulation

Deck: 
Is spending as flat as the numbers seem to show?
Fortnightly Magazine - March 15 2001
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1 Neal, loc. cit.; also see Beth Snyder, "Online Newspapers Helps Electric Utilities Market," , Vol. 68, No. 46 (Nov. 17, 1997), p. 58.

2 Ann Chambers, "Co-Ops Launch National Brand," , Vol. 102, No. 5 (May 1998), pp. 1-3.

3 George Sladoje, "California, One Year Later: More Winners than Losers," , Vol. 37, No. 1 (May, 1999), p. 22.

4 The data were re-analyzed identifying utilities as belonging to one of three groups based on the status of their state's electric industry restructuring activity as of February 1, 2000. (See www.eia.doe. gov/cneaf/electricity/chg_str/regmap.html.). These groups were identified as follows: Group One: Restructuring Legislation Enacted (n=103), Group Two: Comprehensive Regulatory Order Issued (n=12), and Group Three: Commission or Legislative Investigation Ongoing (n=84). Group Two, the smallest group, represents the states that have experienced the most restructuring. There was no significant difference between 1994 and 1997 advertising expenditures per customer for any of the three groups. In fact, Group Two had the highest correlation of the three groups (.999) between 1994 and 1997 expenditures. However, advertising per customer was significantly higher for Group Two than for the other groups. In 1997, average advertising per customer for Group Two was 5.5 times that for Group One and 4.4 times that for Group Three.

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