Understanding the Memory Effects in Pulsing Advertising

Ashwin Aravindakshan () and Prasad A. Naik ()
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Ashwin Aravindakshan: Graduate School of Management, University of California, Davis, Davis, California 95616
Prasad A. Naik: Graduate School of Management, University of California, Davis, Davis, California 95616

Operations Research, 2015, vol. 63, issue 1, 35-47

Abstract: Extant models assume that awareness decline commences instantly. In contrast, we incorporate the possibility that awareness declines with a delay due to the memory for advertisements. To this end, we use delay differential equations to understand the evolution of awareness in the presence of ad memorability. This extended model generates optimal advertising policies that include the even spending policy, blitz policy, and various cyclic pulsing policies, depending on whether ad memorability exceeds a critical threshold. The extended model not only unifies the various patterns of advertising spending over time, but also augments the prior research by furnishing the optimality of pulsing advertising. Thus ad memorability could drive pulsing. We discuss the implications for practicing managers and identify avenues for future researchers.

Keywords: Marketing: advertising and media; optimal control; memory effects; awareness formation; pulsing advertising; Hamiltonian; Lambert W; delay differential equations (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (9)

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