10.3 Estimating the Advertising Carryover Effect (Figure 10-22)

Analysis Scale
Thousands
Advertising Period Before Ad During Ad After Ad
Advertising Expense
$10
$
$15
$
$10
$
Sales Performance      
Without Ad Spending Increase
$195
$
$200
$
$205
$
With Ad Spending Increase  
$220
$
$210
$
Incremental Sales  
20
5
Estimated Carryover Effect
0.25
   
Total Incremental Sales
26667
   
Carryover Sales (after period 1)
6667
   
Starting Data Scale
Thousands
Advertising Period Before Ad During Ad After Ad
Advertising Expense
$10
$
$15
$
$10
$
Sales Performance      
Without Ad Spending Increase
$195
$
$200
$
$205
$
With Ad Spending Increase  
$220
$
$210
$
Incremental Sales  
20
5
Estimated Carryover Effect
0.25
   
Total Incremental Sales
26667
   
Carryover Sales (after period 1)
6667
   
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