Generalizations about Advertising Effectiveness in Markets

Based on over 260 estimates, the mean elasticity of sales or market share to advertising is 0.1 percent.

Generalizations about Advertising Effectiveness in Markets

Gerard J. TellisMarshall School of Business University of Southern California


“Advertising effectiveness in markets” refers to market response to a firm's (or a brand's) advertising. I define “market response” as the firm's (or brand's) choices, sales, or market share in real market contexts. Researchers have also examined the effects of advertising on consumer awareness, attitudes, beliefs, and intentions. These effects typically have been examined in laboratory contexts and are not the focus of this review.

Researchers probably have examined the effect of advertising from the time mass advertising first began more than...

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