Understanding the Timing and Magnitude of Advertising Spending Patterns

Maarten J. Gijsenberg, H. J. Heerde, M. Dekimpe, M. Dekimpe, J. Steenkamp, V. Nijs
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引用次数: 2

Abstract

Notwithstanding the fact that advertising is one of the most used marketing tools, little is known about what is driving (i) the timing and (ii) the magnitude of advertising actions. Building on normative theory, the authors develop a parsimonious model that captures this dual investment process. They explain advertising spending patterns as observed in the market, and investigate the impact of company, competitive, and category-related factors on these decisions, thereby introducing the novel concept of Ad-sensor. Analyses are based on a unique combination of (i) weekly advertising data on 748 CPG brands in 129 product categories in the UK, (ii) household panel purchase data, and (iii) data on new product introductions. The analyzed brands include both large and small brands, both frequent and infrequent advertisers, thus providing a morecomplete and correct overview of the market. The results show that advertising spending patterns can be explained as real-life applications of the normative literature, in which advertising andadvertising goodwill management are embedded in dynamic (s,S) inventory systems. Adstock and Ad-sensor show a positive effect on both timing and magnitude decision. Competitive reasoning is found to have little to no effect on advertising decisions, whereas category-related factors do show an impact. The extent to which campaigning strategies are more or less the outcome of advertising goodwill management systems, however, varies across brands as a function of their relative size and advertising frequency.
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了解广告支出模式的时间和规模
尽管广告是最常用的营销工具之一,但人们对驱动广告行为(1)时间和(2)规模的因素知之甚少。在规范理论的基础上,作者开发了一个简约的模型来捕捉这种双重投资过程。他们解释了在市场上观察到的广告支出模式,并调查了公司、竞争和类别相关因素对这些决策的影响,从而引入了广告传感器的新概念。分析基于以下独特组合:(i)英国129个产品类别中748个CPG品牌的每周广告数据,(ii)家庭面板购买数据,以及(iii)新产品介绍数据。所分析的品牌包括大品牌和小品牌,频繁的和不频繁的广告客户,从而提供了一个更完整和正确的市场概况。结果表明,广告支出模式可以解释为规范文献的现实应用,其中广告和广告商誉管理嵌入动态(s, s)库存系统。广告源和广告传感器对时间和幅度决定均有正向影响。研究发现,竞争推理对广告决策几乎没有影响,而与类别相关的因素确实有影响。然而,竞选策略在多大程度上或多或少是广告商誉管理系统的结果,因品牌的相对规模和广告频率而异。
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