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Stacy Dickert-Conlin, Katie Fitzpatrick, and Laura Tiehen

The Role of Advertising in the Growth of the Supplemental Nutrition Assistance (SNAP) Caseload. Stacy Dickert-Conlin, Katie Fitzpatrick, and Laura Tiehen. The views and opinions expressed here do not necessarily reflect the views of the Economic Research Service, USDA. Outline .

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Stacy Dickert-Conlin, Katie Fitzpatrick, and Laura Tiehen

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  1. The Role of Advertising in the Growth of the Supplemental Nutrition Assistance (SNAP) Caseload Stacy Dickert-Conlin, Katie Fitzpatrick, and Laura Tiehen The views and opinions expressed here do not necessarily reflect the views of the Economic Research Service, USDA.

  2. Outline • Questions and Background • Data • Ad Placement • Methodology • Results • Future Extensions

  3. Questions • Is an advertising campaign an effective tool to increase SNAP participation? • Existing evidence on Food Stamps – small scale experiments • Small to Moderate Effects in other means-tested programs • Examine the effect of a multi-year advertising campaign

  4. Preview of Results • Overall Radio advertisement is associated with 2 to 3% increase in caseloads. • Applications also increase • Approved applications do not • Spanish language TV and Radio ads are sometimes negatively correlated with caseloads and applications

  5. Figure 1: National Monthly SNAP Caseload & Unemployment Rate, 1979-2011

  6. Take-Up Rate (Individuals/Eligibles) Explanations for Take-Up Rates < 100% * Stigma & Transaction Costs * Information

  7. Background on SNAP • Enormous Change in Food Stamp Program • 1996 Welfare Reform • 2002 Farm Bill • 2008 Name Change • Variation in Eligibility Across States

  8. SNAP Advertising Campaigns • USDA-funded campaign started in 2004 to increase awareness of SNAP • Emphasize the potential eligibility of working households • Focus on the ability to purchase healthy food • Introduce the new program name that occurred in 2008

  9. Spanish-language TV ads aired in September and October 2006 SNAP Advertising Campaigns

  10. SNAP Advertising Campaigns

  11. SNAP Advertising Areas

  12. Comparison of Phone Calls Placed to a SNAP Informational Hotline in Months with and without Advertising Campaigns

  13. Comparison of Phone Calls Placed to a SNAP Informational Hotline in TV Advertising States, by Referral Source

  14. Dependent Variables • Caseload • Monthly, county-level (total individuals/population) • Unbalanced panel of monthly-level data from ~2,600 counties in 46 states • Data from 2000 to 2010 • Applications, Approvals, Denials • Currently monthly, county-level for 14 states • Data from 2000 to 2010

  15. Caseload Data – 46 States All States except Connecticut, Illinois, Mississippi, New Hampshire, Rhode Island Monthly Data from 2000 - 2010

  16. Application Data – 14 States

  17. Table 2: Growth in County-Level SNAP Caseloads, Applications, Approval, by Presence of a Radio Ad

  18. Ad Placement • Advertising location decisions made in the fall • Typically, 4-6 months prior to airing of advertisements • Limited funding • Many fewer counties chosen than recommended • If chosen, location received advertisements for all months of the campaign in that year

  19. Ad Placement – Year by Year Still + and large when dependent variable is year of first ad. Target counties Spill counties Democratic state government (+) Counties with larger urban populations Counties with higher shares of Hispanic persons + small • County proposed to receive advertisements by a Regional Administrator (+ and large) • State food security rates (+) • State Very Low Food Security Rates (-) • State SNAP participation Rates (-) • State adoption of the SNAP name (+)

  20. Specification (1) - Panel

  21. Specification (2) - DinD

  22. Specification: Control Variables • Food Stamp Policies • Demographic Characteristics

  23. Table 4: Effect of Advertising Policies on the SNAP Caseload – FE Dependent Variable: ln(SNAP individual caseload/population)ct

  24. Table 5: Effect of Radio Advertising Policies on the SNAP Caseload – DinD -Dependent Variable: ln(SNAP individual caseload/population)ct

  25. Table 6: Effect of Radio Advertising on Per Capita SNAP applications and enrollments – FE Panel

  26. Table 7. Effect of Radio Advertising Policies on the SNAP applications and enrollments

  27. Table 8: Effect of Radio Advertising Policies on the SNAP applications and enrollments – FE Panel – Hispanic locations

  28. Conclusions • Overall Radio advertisement is associated with 2 to 3% increase in caseloads. • Applications also increase with exposure to radio ads • Approved applications do not • Why? • Ads encourage recertification? • Caseworker behavior changes? • Spanish language TV and Radio ads are sometimes negatively correlated with caseloads and applications • Why?

  29. Policy Implications • Outreach has long been an important component of policy • EITC, Medicaid, Veteran’s Benefits • Results, thus, far indicate its most effective for those already participating

  30. Next Steps • Gather and include additional application data • Consider the effect of repeated exposure to advertising • Examine observable characteristics of the caseload: average benefit amount, age, household size, employment, etc

  31. Comments, Suggestions, or Questions? fitzpatk@seattleu.edu Thank you!

  32. Advertisements Radio Ads http://www.fns.usda.gov/snap/outreach/radio/default.htm TV Ads http://www.fns.usda.gov/snap/outreach/psas.htm

  33. Distribution of Pattern of Advertising Timing 2004- 2010

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