Advertising increases market shares and media mix achieves most

Author: Adrian Weser


There are still controversial opinions on how to quantify the contribution of classical advertising to market success. The development of advertising-effect-formulas, considering the calculable relationship between advertising expenditures and market success, began in the mid- 1950s in Germany. These econometrical formulas measure changes of market shares in dependence of advertising expenditures and other relevant marketing parameters during consecutive periods. The first "WerbeWert" study by VDZ (magazine publisher’s association in Germany) as well as its continuation named "WerbeWert 97" will be described. This new study considers print media and TV as well as radio and poster advertising, based on a five year period. As macro-formulas with generalizable knowledge, econometrical studies do not replace creative strategies or media planning, but are very suitable for better comprehension of advertising effect correlations and could also help assess advertising strategies. Finally they prove the advantages of media mix advertising can be calculated on a secure empirical basis.

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