Understanding implications on ad awareness

  • The objective is to build a excel based module that allows clients to review advertising schedules, with an objective of evaluating the impact of that schedule on both long and short term sales.
  • This involves a 3 stage process:
    • Evaluating the effectiveness of ad spend
    • To improve Ad awareness
    • To impact on product demand
  • The modelling process to identify this relationship is usually through Distributed Lag Models.
  • These are difficult to solve unless we impose a structure to the lagged relationship – this is usually through a Geometric Lag Distribution Model.
  • There is a tendency for practitioners to roughly estimate the lag driver through testing the model fit across a range of solutions. There are few who can actually estimate the optimal solution!