Adstock modelling for the long term

Tim Fry and Simon Broadbent

The paper suggests two ways to model the long term effects of advertising. One simply uses adstocks with a long half life.
  

Adstock Modelling for the Long Term

Simon Broadbent   Leo Burnett, UK andTim Fry Department of Econometrics, Monash University, Australia

Introduction

Adstock modelling (Barnard & Smith 1989; Broadbent 1993; Institute of Practitioners in Advertising (1981-95)), with a short half-life, is a well-established way of representing the size of those advertising effects which last a few weeks. The equation for the objective variable includes a constant and an adstock term as well as the effects of other factors; in its linear form (a multiplicative equivalent is in Appendix 2):

B + d.Sads...

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