Econometric modelling is a broad-level analytical approach that enhances understanding of marketing effectiveness and the benefits of long-term advertising. Econometric modelling can determine which media channels offer the best return on investment, and can enhance creative strategy. Better suited to a macro context, the limitations of econometric modelling are exposed when it comes to offering immediate and actionable real-time insight.


Economic modelling stems from econometrics - the branch of economics concerned with the use of mathematical methods (especially statistics) in describing economic systems. By employing economic variables, econometric modelling can determine how movements in sales or other brand KPIs come about.

For marketing communications it enables understanding in terms of how much each media channel contributes and over what timescale, helping to allocate budget more effectively.

Key Insights

1. Econometric modelling techniques are being extended to model brand equity