Modeling the Microeffects of Television Advertising: Which Ad Works, When, Where, for How Long, and Why?

Marketing Science, Vol. 24, No. 3, 2005

8 Pages Posted: 25 May 2006

See all articles by Gerard J. Tellis

Gerard J. Tellis

University of Southern California - Marshall School of Business, Department of Marketing

Rajesh K. Chandy

University of Minnesota - Twin Cities - Carlson School of Management

Deborah J. MacInnis

University of Southern California - Marketing Department

Pattana Thaivanich

affiliation not provided to SSRN

Abstract

Most past research has focused on how aggregate advertising works in field settings. However, the information most critical to managers is which ad works, in which medium or vehicle, at what time of the day, at what level of repetition, and for how long. Managers also need to know why a particular ad works in terms of the characteristics (or cues) of its creative. The proposed model addresses these issues. It provides a comprehensive method to evaluate the effect of TV advertising on sales by simultaneously separating the effects of the ad itself from that of the time, placement (channel), creative cues, repetition, age of the ad, and age of the market. It also captures ad decay by hour to avoid problems of data aggregation. No model in the literature provides such an in-depth and comprehensive analysis of advertising effectiveness. Applications of the model have saved millions of dollars in costs of media and design of creatives.

Keywords: advertising response, wear-in, wear-out, carry-over effect, long-term effect, ad creative, ad cues

Suggested Citation

Tellis, Gerard J. and Chandy, Rajesh K. and MacInnis, Deborah J. and Thaivanich, Pattana, Modeling the Microeffects of Television Advertising: Which Ad Works, When, Where, for How Long, and Why?. Marketing Science, Vol. 24, No. 3, 2005. Available at SSRN: https://ssrn.com/abstract=904135

Gerard J. Tellis (Contact Author)

University of Southern California - Marshall School of Business, Department of Marketing ( email )

Hoffman Hall 701
Los Angeles, CA 90089-0443
United States
213-740-5031 (Phone)
213-740-7828 (Fax)

HOME PAGE: http://gtellis.net

Rajesh K. Chandy

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

Deborah J. MacInnis

University of Southern California - Marketing Department ( email )

Hoffman Hall 701
Los Angeles, CA 90089-1427
United States

Pattana Thaivanich

affiliation not provided to SSRN ( email )

No Address Available

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