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Long-term Advertising Effects and Optimal Budgeting

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Using pure single-source data, this paper provides evidence for theexistence and magnitude of long-term advertising effects across FMCG productcategories. Furthermore, we focus on the difficulties that arise for wellestablishedbrands when new products are introduced into the market andproduct innovations take place. Our research shows that such occurrencesdrastically alter the relationship between share of voice and share of market inany given FMCG market, hence making it pivotal for marketers to focus on suchrelationships in order to maintain market position.

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Flemming Hansen, Lars Bech Christensen

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