How Much Advertising Do You Really Need?

The median brand in our data has an a elasticity of around point zero one. So this means that doubling the amount of advertising would lead to about one per cent increase in sales for these brands. We find that almost all brands seem to be over advertising, and that they are earning a negative r o i from advertising in an average week. And if they were to instead decide not to advertise in a given week, they would earn higher profits....