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...