Measurement of Advertising ROI for Consumer Packaged Goods Brands

Bill Lombardi

In the light of market conditions in 2002, the author discusses the two main methods in the USA for evaluating advertising's return on investment: marketing mix analysis via marketing modelling and in-market advertising testing.

Measurement of Advertising ROI for Consumer Packaged Goods Brands

Bill LombardiAnalytic Insights Group Information Resources, Inc.

 

In the book, 'The Art of War' by Sun Tsu, the author describes that a strategist's keys to victory are based on his or her estimates prior to going to battle. 'With many calculations, one can win; with few, one cannot. How much less chance of victory has one who makes none at all!' Translated to present day advertising strategy, I take this to mean: run the numbers, track key performance indicators, establish benchmarks, and develop contingency plans. Well, maybe it's not...

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