Econometrics: The case for long-term advertising
Matt Clary and Paul DysonData2Decisions
Econometrics provides a compelling case for the positive long-term impact of advertising on sales, but to measure it requires rigorous data analysis and a category-specific understanding of what long-term vs. short-term effects are.
Like many investments made in business, the financial return from advertising isn't always immediate. Many econometrics studies have shown that the short-term return on advertising is often less than the investment itself, especially for FMCG and consumer packaged goods (CPG). So, advertisers put their faith in the 'long-term' benefit of advertising to justify the investment,...