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  How does advertising work compared to promotions?  
 

 

  
  Using the model equation – we decompose sales into sales “caused” by the different factors for an fmcg product.  
     
Decomposition - FMCG Brand
     
  And relate the sales uplift to the investment in each strand to determine revenue ROIs.  
     
 
       
    AS A RESULT  
       
  By reallocating some (not all, just enough) of the promotional budget towards advertising –  
       
  Overall Return on marketing investment increased
by 14%		  
       
 
     
 
Back to questions  
     
 
 
           
           
    Multibuy promotions    
      1:1.18    
           
    TV advertising with multibuy promotions    
      1:3.25    
           
    TV advertising without multibuy promotions    
      1:2.07    
           
           
 
 
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