BROWSE

Parasitic Advertising

What is 'Parasitic Advertising'

A type of marketing that promotes one product at the cost of lost sales for another product. Parasitic advertising often occurs when two products are close substitutes for one another. Firms generally attempt to avoid parasitic advertising within their own product offerings because it is not the most effective way of maximizing the return on ad spending.

Explaining 'Parasitic Advertising'

Parasitic advertising can be a problem for large firms like Procter and Gamble, which owns many brands. This means that advertising must be coordinated across the firm in order to minimize the degree to which P&G's brands compete with each other. One way to avoid parasitic advertising is to target brands toward different segments of consumers, perhaps by making one a luxury brand while making another a mid-price brand.


Further Reading


Offshore financial centres: parasites or symbionts?
academic.oup.com [PDF]
… Andrew K. Rose, Mark M. Spiegel, Offshore Financial Centres: Parasites or Symbionts?, The Economic Journal, Volume 117, Issue 523, October 2007, Pages 1310–1335, https://doi.org/10.1111/j.1468-0297.2007.02084.x. Download citation file …

A retrospective study of abattoir condemnation due to parasitic infections: economic importance in Ahwaz, southwestern IranA retrospective study of abattoir condemnation due to parasitic infections: economic importance in Ahwaz, southwestern Iran
meridian.allenpress.com [PDF]
… Andrew K. Rose, Mark M. Spiegel, Offshore Financial Centres: Parasites or Symbionts?, The Economic Journal, Volume 117, Issue 523, October 2007, Pages 1310–1335, https://doi.org/10.1111/j.1468-0297.2007.02084.x. Download citation file …

Commentary: The Servant, the Parasite, and the Enigma: A Tale of Three Ownership Structures and Their Affiliate DirectorsCommentary: The Servant, the Parasite, and the Enigma: A Tale of Three Ownership Structures and Their Affiliate Directors
journals.sagepub.com [PDF]
… Andrew K. Rose, Mark M. Spiegel, Offshore Financial Centres: Parasites or Symbionts?, The Economic Journal, Volume 117, Issue 523, October 2007, Pages 1310–1335, https://doi.org/10.1111/j.1468-0297.2007.02084.x. Download citation file …

The economics of parasitic diseases: Research prioritiesThe economics of parasitic diseases: Research priorities
www.sciencedirect.com [PDF]
… Andrew K. Rose, Mark M. Spiegel, Offshore Financial Centres: Parasites or Symbionts?, The Economic Journal, Volume 117, Issue 523, October 2007, Pages 1310–1335, https://doi.org/10.1111/j.1468-0297.2007.02084.x. Download citation file …

The effects of parasitic infection on cognitive performanceThe effects of parasitic infection on cognitive performance
www.sciencedirect.com [PDF]
… Andrew K. Rose, Mark M. Spiegel, Offshore Financial Centres: Parasites or Symbionts?, The Economic Journal, Volume 117, Issue 523, October 2007, Pages 1310–1335, https://doi.org/10.1111/j.1468-0297.2007.02084.x. Download citation file …

On Advertising and Saling from Systematic Points of ViewOn Advertising and Saling from Systematic Points of View
en.cnki.com.cn [PDF]
… Andrew K. Rose, Mark M. Spiegel, Offshore Financial Centres: Parasites or Symbionts?, The Economic Journal, Volume 117, Issue 523, October 2007, Pages 1310–1335, https://doi.org/10.1111/j.1468-0297.2007.02084.x. Download citation file …

Ten Misapplications of Advertising Strategy PlanningTen Misapplications of Advertising Strategy Planning
en.cnki.com.cn [PDF]
… Andrew K. Rose, Mark M. Spiegel, Offshore Financial Centres: Parasites or Symbionts?, The Economic Journal, Volume 117, Issue 523, October 2007, Pages 1310–1335, https://doi.org/10.1111/j.1468-0297.2007.02084.x. Download citation file …



Q&A About Parasitic Advertising


Why can large firms like Procter and Gamble have problems with parasitic advertisements?

Large firms like Procter and Gamble have problems with this because they own many brands, which means that they must coordinate ad spending across the firm in order to minimize the degree to which P&G's brands compete with each other.

How do firms attempt to avoid parasitic advertising within their own product offerings?

Firms attempt to avoid this by not promoting other products in their own line up.

What is the definition of a parasite?

A parasite is an organism that lives in or on another living organism.

In what places is it illegal to use another brand's good reputation?

It is illegal in Sweden, according to Swedish Marketing Act (1995).

What does parasitic advertising occur when two products are close substitutes for one another?

Parasitic advertising occurs when two products are close substitutes for one another.

What does reputation parasitism refer to?

Reputation parasitism refers to when one advertiser uses another brand's good reputation to market his own product.

How can you tell if someone has used your good reputation for their own benefit?

You will see a product in a design that is very similar to an existing product or using a similar name.

What is parasitic advertising?

Parasitic advertising is a type of marketing that promotes one product at the cost of lost sales for another product.

Who often experiences parasitic advertising?

Firms experience this type of advertising.

How can you avoid parasitic advertisement?

One way is by targeting brands toward different segments of consumers, perhaps by making one a luxury brand while making another a mid-price brand.