<story><title>TV Advertising Effectiveness and Profitability</title><url>https://onlinelibrary.wiley.com/doi/abs/10.3982/ECTA17674</url></story><parent_chain><item><author>hammock</author><text>There is a fundamental misunderstanding (intentional or not) with these types of studies and claims.&lt;p&gt;Limited-time promotions, e.g. a 10% off sale, work on short timescales that are easily measured. You can easily say what the ROI is of an advertised promotion, and it is often positive. (Side note, these promotions have a more-difficult-to-measure detrimental effect on your long-term profitability, closely related to the point I am about to make below)&lt;p&gt;Brand advertising, in contrast, works on a spread-out scale of years or decades. When Coca-Cola runs a polar bear ad at Christmastime they don&amp;#x27;t do it to increase sales of Coke that week, nor should it be measured that way.&lt;p&gt;The actual effect that a brand advertisement has, is to add PENNIES (not dollars) to their sales every day, for the next 100 YEARS. It&amp;#x27;s a long-term investment. And for these reasons hard if not impossible to measure or control for confounders - but that doesn&amp;#x27;t mean it doesn&amp;#x27;t work!!&lt;p&gt;And without that brand investment, their brand value is continuously eroding away, at a rate of pennies (or more) per day.&lt;p&gt;Source: Been on the leading edge of marketing and advertising for over 12 years</text></item></parent_chain><comment><author>slg</author><text>&amp;gt;Brand advertising, in contrast, works on a spread-out scale of years or decades...The actual effect that a brand advertisement has, is to add PENNIES (not dollars) to their sales every day, for the next 100 YEARS. It&amp;#x27;s a long-term investment. And for these reasons hard if not impossible to measure or control for confounders - but that doesn&amp;#x27;t mean it doesn&amp;#x27;t work!!&lt;p&gt;Car brands are the obvious example of brand advertising.  They are among the most common TV advertisers but they don&amp;#x27;t expect people to immediately go out and spend $50k on a new Mercedes-Benz after watching a 30 second commercial. They just want to establish Mercedes-Benz as a brand of luxury, performance, technology, etc.  That way the next time you are in the market to buy a car you already have an ingrained positive perception of Mercedes-Benz that might help sway your decision.</text></comment>
<story><title>TV Advertising Effectiveness and Profitability</title><url>https://onlinelibrary.wiley.com/doi/abs/10.3982/ECTA17674</url></story><parent_chain><item><author>hammock</author><text>There is a fundamental misunderstanding (intentional or not) with these types of studies and claims.&lt;p&gt;Limited-time promotions, e.g. a 10% off sale, work on short timescales that are easily measured. You can easily say what the ROI is of an advertised promotion, and it is often positive. (Side note, these promotions have a more-difficult-to-measure detrimental effect on your long-term profitability, closely related to the point I am about to make below)&lt;p&gt;Brand advertising, in contrast, works on a spread-out scale of years or decades. When Coca-Cola runs a polar bear ad at Christmastime they don&amp;#x27;t do it to increase sales of Coke that week, nor should it be measured that way.&lt;p&gt;The actual effect that a brand advertisement has, is to add PENNIES (not dollars) to their sales every day, for the next 100 YEARS. It&amp;#x27;s a long-term investment. And for these reasons hard if not impossible to measure or control for confounders - but that doesn&amp;#x27;t mean it doesn&amp;#x27;t work!!&lt;p&gt;And without that brand investment, their brand value is continuously eroding away, at a rate of pennies (or more) per day.&lt;p&gt;Source: Been on the leading edge of marketing and advertising for over 12 years</text></item></parent_chain><comment><author>mihaaly</author><text>If you cannot measure then you are just bluffing that it works! You cannot know yourself for god&amp;#x27;s sake!&lt;p&gt;&amp;quot;Been on the leading edge of marketing and advertising for over 12 years &amp;quot;&lt;p&gt;Aaaaaah, I see! It is your personal interest to be payed very well for unsubstantiated claims! Fishing in troubled waters. We will consider your !!opinion!! accordingly....</text></comment>