How much does advertising matter anyway?

Our results reveal substantially smaller advertising elasticities compared to the results documented in the extant literature, as well as a sizable percentage of statistically insignificant or negative estimates. If we only select products with statistically significant and positive estimates, the mean and median of the advertising effect distribution increase by a factor of about five.

That is from a new paper by Shapiro, Hitch, and Tuchman, via Paul Novosad.

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