RT Journal Article
SR Electronic
T1 If the Question Is Ad Effects, the Answer Is ‘Not Elasticities’
JF Journal of Advertising Research
JO J Advert Res
FD WARC
SP 7
OP 11
DO 10.2501/JAR-41-2-7-11
VO 41
IS 2
A1 Broadbent, Simon
YR 2001
UL http://www.journalofadvertisingresearch.com/content/41/2/7.abstract
AB Advertising sales elasticity is often used to compare advertising effects (across years, campaigns, media, regions and brands). Broadbent describes why using ‘elasticity’ in the form of a coefficient in a logarithmic regression, is wrong; and why seeing ‘elasticity as the proportion of sales due to advertising is misleading. He recommends using the advertising coefficient in a linear regression for such comparisons.