The Total Long-Term Sales Effects of Advertising: Lessons from Single Source

This article brings together the knowledge gained from two different approaches to analyzing single source data: aggregate-level experimental split-cable tests and individual-level analysis without experimental controls.

The Total Long-Term Sales Effects of Advertising: Lessons from Single Source

Kate Newstead, Jennifer Taylor, Rachel Kennedy and Byron SharpEhrenberg-Bass Institute, University of South Australia

INTRODUCTION

If advertising drives sales—and more than 40 years of single source behavior measurement clearly shows that most advertising does (see Wood, this issue, p. 186)—it does so by nudging the propensity to buy the brand of the individuals who saw the commercial.

This nudge is the behavioral effect of advertising and should be the metric upon which it is judged. This change in buying propensity, however, can...

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