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Advertising Effectiveness
 

Advertising Effectiveness

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Advertising Effectiveness - Alan Cox, Core Media Group

Advertising Effectiveness - Alan Cox, Core Media Group

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  • The likely impact of this decline on the profitability of the brand over the three year period was then modelled assuming a fairly typical cost structure for a packaged goods brand. Other assumptions made were that category growth ceased for two years and resumed 5% growth in the third year; that marketing communications expenditure for the brand was restored in the third year; and that fixed costs for the brand rose with RPI across the downturn. The resulting profitability pattern echoed the conclusions of other researchers: that a short-term improvement was rapidly overtaken by a severe decline that became acute in the third year when the marketing budget was restored (source IPA Datamine doc)

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