Advertising Adstock - Advertising Lag: Decay Effect

Advertising Lag: Decay Effect

The lagged or decay component of advertising adstock can be mathematically modelled and is usually expressed in terms of the 'half-life' of the ad copy, modeled using TV gross rating point (GRP). A 'two-week half-life' means that it takes two weeks for the awareness of a copy to decay to half its present level. Every ad copy is assumed to have a unique half-life. Some academic studies have suggested half-life range around 7–12 weeks. Other academic studies find shorter half-lives of approximately four weeks, and industry practitioners typically report half-lives between 2–5 weeks, with the average for Fast Moving Consumer Goods (FMCG) Brands at 2.5 weeks.

The copy in the above graph has a half-life of 2.5 weeks.

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