594. Your Brand’s Spokesperson Just Got Arrested — Now What?
Freakonomics Radio
Questioning the impact of advertising campaigns
The inability to reject the null hypothesis about the lack of impact raises doubts about the effectiveness of a well-known advertising campaign for Subway. The discrepancy between the perceived success of the ads by insiders and the actual detectable impact on purchases prompts considerations about the campaign's true influence. It is suggested that the advertising may have initially been influential but lost effectiveness over time, or that the firm may have overestimated the campaign's contribution to their profits. The incentive for marketing directors to overstate the impact of their campaigns is acknowledged, with research indicating that advertising may not be as effective as claimed by marketing departments.
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