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- TV advertising's impact on sales is difficult to prove due to lack of randomized testing and targeted placements.
- Empirical analysis challenges the belief in TV ads' effectiveness, showing low brand ad elasticity and potential overspending by brands.
Deep dives
Puzzle of Advertising Effectiveness
Advertising effectiveness, specifically regarding TV ads, remains a complex puzzle. An experiment with a big retail company showed the challenges of proving the direct impact of TV adverts on sales due to the lack of randomized testing. The company's correlation between TV ads and sales was hindered by its targeted ad placements around peak shopping periods, complicating clear causality assessment.
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Listen to the best highlights from the podcasts you love and dive into the full episode