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5 empirical generalizations in Exchange.

5 findings

Exchange › Conversion

When Competitors' Ads Cancel Out Yours

Competitor advertising clutter cuts into the sales lift a brand's own TV spend delivers, driven more by how many rivals advertise than their total GRP weight; many CPG brands overspend past the optimal ad level, and price still moves sales far more than advertising.

Exchange › Customer Attraction

TV-Driven Branded Search

TV advertising lifts branded and category search volume alike, but mostly by stealing query share from rivals rather than growing the category; the branded-keyword effect fades within hours, while the category-search lift builds slowly and lasts for days.

Exchange › Conversion

How Much Advertising Moves Sales

Advertising's short-term sales elasticity swings widely across published models depending on modeling choices, such as whether carryover is included, functional form, and pooled versus time-series data; about half of advertising's effect carries into future periods, and European estimates run higher than US ones.

Exchange › Conversion

Price vs. Advertising: What Moves Sales More

Sales respond far more to price than to advertising, and that gap widens for mature, nondurable products mainly because their advertising elasticity drops while price elasticity holds steady; a pricing model weighs this ratio against retail pass-through and margin to set the tradeoff.

Exchange › Conversion

Personal Selling's Effect on Sales

Personal selling drives sales more for early life-cycle products than mature ones, and more in Europe than the US; pharmaceutical detailing shows the weakest response of any B2B sales force, and its impact has declined over time even as carryover into future periods runs strong.