If the Question Is Ad Effects, the Answer Is ‘Not Elasticities’

Simon Broadbent

11 citations0/0 files storedJournal of Advertising Research

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Marketing and Advertising Strategies Consumer Market Behavior and Pricing Forecasting Techniques and Applications

Abstract

ABSTRACT Advertising sales elasticity is often used to compare advertising effects (across years, campaigns, media, regions and brands). Broadbent describes why using ‘elasticity’ in the form of a coefficient in a logarithmic regression, is wrong; and why seeing ‘elasticity as the proportion of sales due to advertising is misleading. He recommends using the advertising coefficient in a linear regression for such comparisons.

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1988The price elasticity of selective demand : a meta-analysis of sales response models 2000What do advertisements really do for brands?

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