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.
