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Modeling the Effectiveness of Hourly Direct-Response Radio Commercials

Meltem Kiygi Calli, Marcel Weverbergh and Philip Hans Franses

No ERS-2008-019-MKT, ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: The authors investigate the impact of direct-response commercials on incoming calls at a national call center. To this end, the authors analyze the data of a fast service for repairs of (parts of) a durable consumption good in Flanders, Belgium. The authors have access to data at the 15 minute interval covering 30 months in which 5172 radio commercials were broadcasted on six radio stations at various times of the day and at with differing commercial lengths. Their model is a two-level model, where the first-level estimates of the short-run and long-run effects are correlated with various aspects of the commercial is the second level. Their main conclusion is that GRPs are the key drivers of the effectiveness of commercials.

Keywords: HF5837; advertising effectiveness; advertising response; long-run elasticity; short-run effects; two-level model (search for similar items in EconPapers)
JEL-codes: C44 M M31 (search for similar items in EconPapers)
Date: 2008-04-15
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