Learning More About Planning For Marketing Efficiency

The way ahead

Alan Smith
Independent Research Consultant

Background

Advertisers are rightly demanding more information on how to improve the effectiveness of their marketing expenditure, but to date progress has been slow, largely because the research tools available have been inadequate, and also because of the structure, unproven established wisdom and conservatism of the advertising industry. Additionally many approaches have been too limited in their coverage.

For example, many econometric studies have concentrated on marketplace characteristics, such as the number of competitors, relative prices and distribution levels on the one hand, and TVRs or money spent on the other, without taking into account any other campaign characteristics (Weser, 1997). In effect, this is saying that all the many planning decisions made by the agency make no difference to the results achieved. The statistical analyses might be fine, but a moment's reflection will reveal the weakness of this thinking.