Advertising Adstock
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Advertising Adstock is a term coined by Simon Broadbent [1] to describe the prolonged or lagged effect of advertising on consumer purchase behavior. It is also known as 'advertising carry-over'. Adstock is an important component of marketing-mix models.
The Adstock theory hinges on the assumption that exposure to television advertising builds awareness in the minds of the consumers, influencing their purchase decision. Each new exposure to advertising builds awareness and this awareness will be higher if there have been recent exposures and lower if there have not been. In the absence of further exposures adstock eventually decays to negligible levels.
Adstock can be mathematically modelled and is usually expressed in terms of the 'half-life' of the ad copy, modeled using TV Gross Rating Point (GRP). A 'two-week half-life' means that it takes two weeks for the awareness of a copy to decay to half its present level. Every Ad copy is assumed to have a unique half-life. Some academic studies have suggested half-life range around 7-12 weeks [2], while industry practitioners typically report half-lives between 2-5 weeks, with the average for Fast Moving Consumer Goods (FMCG) Brands at 2.5 weeks [3].
Measuring and determining adstock, especially when developing a marketing mix model, is a key component of determining marketing effectiveness.
[edit] References
- ^ Broadbent, S. (1979) "One Way TV Advertisements Work", Journal of the Market Research Society Vol. 23 no.3.
- ^ Leone, R.P. (1995) "Generalizing what is known about temporal aggregation and advertising carry-over", Marketing Science, 14, G141-G150.
- ^ Joseph, J.V. (2006) "Understanding Adstock Transformations".
