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Advertisement evaluation: The case of Volkswagen (Spanish)

Date of publication: April 9, 2019

Catalogue: Latin America 2019

Authors: Fabricio Alarcón, Pablo Lemoine

Abstract:

The truth is companies spend millions of dollars on advertising and they don't truly know what works and what doesn't. They have no way to establish a ROI on a TV commercial or a Radio ad. At best, they can estimate the number of people that saw the commercial, but that's still quite far from a return on investment. We were hired by Volkswagen to count the number of people that go into their distributors and ask them a few questions to evaluate the service. We have done this for over a year. Our innovation was to ask Volkswagen for their investment on advertisement day by day. With this data and the data on the number of visits per distributor we develop a model to evaluate which half of the investment was useful and which wasted.

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