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The Long Term Effects of Advertising
10/5/01



Millward Brown has used SalesDynamics™ for many years to isolate the short-term sales effects of advertising. More recently, as reported in the latest edition of the company’s newsletter Perspectives, MB has turned its attention to the more difficult task of isolating the longer-term sales effects of advertising.

Whilst some commentators would argue this is a difficult task, the research exercise - carried out on 94 brands in a wide array of categories - showed that it is possible to quantify the long-term advertising impact on sales. In 83 out of the 94 brands examined, it has been possible to demonstrate the additional longer-term impact of advertising on sales.

Key findings include:


  • The majority of these brands had a longer-term sales effect around the same or double the short-term impact.
  • However, one in five had a longer-term advertising effect at least 5 times greater than the short-term impact.
  • Advertising weight appears to be important. Brands with low ad weights or inconsistent spending patterns tended to have smaller long-term effects.
  • Advertising builds sales momentum over the longer-term. Established brands displayed a greater ratio of long-term to short-term sales due to advertising. Newer brands had a higher ratio of ad sales accruing over the short-term as they built up their overall sales momentum.
  • The creative element matters. Ads with better creative appear to have a larger and longer lasting long-term sales effect.