The impact of advertising on market share: Controlling for clutter, familiarity, and goodwill decay

Nicholas De Canha, Michael Ewing, and Ali Tamaddoni

The advertising-sales relationship remains paramount. This study, believed to be the largest that focuses on automotive sales and advertising, investigates ceilings and thresholds by optimizing budget allocations among media.

MANAGEMENT SLANT

  • A significant portion of advertising is wasted because of suboptimal media allocation that overlooks the impact of clutter, familiarity, and sales percentage difference on thresholds, ceilings, advertising goodwill, and market share.

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