Sales Response to Advertising

Advertising research still has to make a major contribution, both theoretically and practically, providing a satisfactory answer to the question: how does advertising influence sales? This article tackles the problem by providing a thorough analysis of the causal relationship between advertising and sales, the strength of the effects and the occurrence of time lags. Time series data for advertising and sales are related to each other in a quantitative model to provide an answer to the question of how advertising contributes to sales. The method presented is applicable to other related studies and information can thus be accumulated about the usefulness of the model.