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Effectiveness of TV Advertising

TV Advertising Might Not be Everything You Think It Is

According to Chicago Booth’s Bradley Shapiro and Günter J. Hitsch and Northwestern’s Anna E. Tuchman, television advertising may be considerably less effective than published studies suggest. Their findings may disappoint marketing executives responsible for spending billions of dollars a year on TV ads in the United States. Based on the Nielsen Datasets at the Kilts Center for Marketing, the researchers analyze the top 500 products sold at more than 12,000 stores from 2010 to 2014. The results revealed that television advertising’s effect on sales was about one-fifth as much as calculated when typically included in published studies of advertising efficacy.

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