ROAS* is the Rodney Dangerfield of media metrics. Gets not respect…after all, who needs to know whether advertising has generated any business value? And who needs a disciplined way to set the advertising budget when we already have the industry’s trusted planning methodology: “Hey, let’s plus that thing up a bit this year.” Or, “Sales […]
Sep
24
ROAS doesn’t get any respect…should it?
In: advertising effectiveness, advertising elasticity, Advertising ROI, Dorfman-Steiner, economics
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Jul
10
An Economist View…How Advertising Creates Value for Consumers
In: consumer surplus, consumer value creation, economics, Micro economics, price theory
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(Please read an expanded blog for additional information.) Advertising has long been viewed with suspicion—not only by CFOs as an expense to minimize, but by critics like John Kenneth Galbraith and Vance Packard, who argued it persuades people to buy things they don’t need. Economics principles point to a very different conclusion. My economics professor […]