An Operations-Research Study of Sales Response to Advertising

Abstract

This paper presents the results of studies for major industrial concerns on the sales response to advertising. A simple model of the interaction of advertising and sales is described that is consistent with the results of controlled experiments performed on a large number of products and several media. The model is based on three parameters Sales Decay Constant, Saturation Level, and Response Constant. It has proved useful for analyses of advertising campaigns and for allocations of advertising appropriations.