The Optimal Data Interval for Econometric Models of Advertising Carryover
Marketing Science, Forthcoming
37 Pages Posted: 25 May 2006
The abundance of highly disaggregate data (e.g., at 5 second intervals) raises the question of the optimal data interval to estimate advertising carryover. The literature assumes that 1) the optimal data interval is the inter-purchase time, 2) too disaggregate data causes a disaggregation bias and 3) recovery of true parameters requires assumption of the underlying advertising process. In contrast, we show that 1) the optimal data interval is the inter-exposure time. 2) Too disaggregate data does not cause any disaggregation bias, and 3) recovery of true parameters does not require assumption of the advertising process but only data at the inter-exposure time. These results hold for any linear dynamic model linking sales with current and past advertising.
Keywords: Advertising carryover, Data Interval, Econometric Models
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