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Assessing the effect of advertising expenditures upon sales: a Bayesian structural time series model

Víctor Gallego, Pablo Suárez-García, Pablo Angulo, David Gómez-Ullate

arXiv 9 Jan 2018 · Statistics — Machine Learning · publishedApplied Stochastic Models in Business and Industry (2019) · 17 citations (OpenAlex)

arXiv:1801.03050 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a robust implementation of the Nerlove--Arrow model using a Bayesian structural time series model to explain the relationship between advertising expenditures of a country-wide fast-food franchise network with its weekly sales. Thanks to the flexibility and modularity of the model, it is well suited to generalization to other markets or situations. Its Bayesian nature facilitates incorporating a priori information (the manager's views), which can be updated with relevant data. This aspect of the model will be used to present a strategy of budget scheduling across time and channels.

Citation extraction

30
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43
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appendix boundary found by appendix_command · 97% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Steven L Scott and Hal R Varian (2014) Predicting the present with bayesian structural time series0.81142100%
2Marc Nerlove and Kenneth J Arrow (1962) Optimal advertising policy under dynamic conditions0.73732100%
3John DC Little (1975) Brandaid: A marketing-mix model, part 1: Structure0.64422100%
4John DC Little (1979) Aggregate advertising models: The state of the art0.64422100%
5Simo Särkkä (2013) Bayesian Filtering and Smoothing, volume 30.64422100%
6Steven L Scott (2016) bsts: Bayesian structural time series, 20160.64422100%
7ML Vidale and HB Wolfe (1957) An operations-research study of sales response to advertising0.64422100%
8Giovanni Petris, Sonia Petrone, and Patrizia Campagnoli (2009) Dynamic linear models0.58531100%
9Gert Assmus, John U Farley, and Donald R Lehmann (1984) How advertising affects sales: Meta-analysis of econometric results0.51121100%
10Kyle Bagwell (2007) The economic analysis of advertising0.40511100%

Showing the top 10 of 30 scored citations.