The Lifetime Value of Advertising

This paper outlines the database and methodology used to provide greater depth in modeling the volume effect of advertising and reports the direction of initial findings from this work.

The Lifetime Value Of Advertising

Utilization of Household Behavioral Databases For Modeling of Advertising Effectiveness

Steve Kingsbury President, Promotions Decisions, Inc., United States.

INTRODUCTION

Over the past ten years, modeling of the effect of advertising on brand sales has become established and accepted in the consumer packaged goods world. This has represented a substantial step forward vs. the belief oriented decision process that said advertising worked even though its effect could not be measured. Today, econometric models provide a quantification of advertising's effectiveness. This quantification is sufficient to understand short-term volume impact but does not answer the questions...

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