Advertising persuasion in dual markets

Many firms operate in 'dual' markets by selling the same products and services to both individual and institutional customers. Can they also persuade both with the same advertising content? The authors investigate this issue by examining a unique database including information on institutional and individual mutual fund flows, advertising frequency, and (persuasive and informative) advertising content. They find that the effects of persuasive advertising content on institutional and individual fund flows are similar and sizeable in terms of elasticity. In addition, they find that only the individual market responds to informative advertising content. Hence, dual-market firms can use persuasive content to achieve advertising economies.