References (5)



Understanding Advertising Adstock Transformations

Joy V. Joseph

Information Resources Inc

May 15, 2006

Advertising effectiveness and Return on Investment (ROI) are typically measured through econometric models that measure the impact of varying levels of advertising Gross Ratings Points (GRPs) on sales or on purchase decision and choice. TV advertising has both dynamic and diminishing returns effects on sales, different models capture these dynamic and nonlinear effects differently. This paper focuses on reviewing the econometric rationale behind the popularized Adstock transformation model that allows the inclusion of lagged and non-linear effects in linear models based on aggregate data.

Number of Pages in PDF File: 7

Keywords: Advertising, Adstock Model, Non-linear transformation, Marketing-Mix

JEL Classification: M37

Open PDF in Browser Download This Paper

Date posted: August 16, 2006  

Suggested Citation

Joseph, Joy V., Understanding Advertising Adstock Transformations (May 15, 2006). Available at SSRN: http://ssrn.com/abstract=924128 or http://dx.doi.org/10.2139/ssrn.924128

Contact Information

Joy V. Joseph (Contact Author)
Information Resources Inc ( email )
PO Box 6157
Woodbridge, VA 22195
Feedback to SSRN

Paper statistics
Abstract Views: 8,923
Downloads: 3,255
Download Rank: 1,735
References:  5

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.282 seconds