Pj. Danaher et Rt. Rust, DETERMINING THE OPTIMAL RETURN ON INVESTMENT FOR AN ADVERTISING CAMPAIGN, European journal of operational research, 95(3), 1996, pp. 511-521
Citations number
48
Categorie Soggetti
Management,"Operatione Research & Management Science","Operatione Research & Management Science
In this this paper we adopt the point of view that advertising is an i
nvestment, and propose a simple formula for calculating the level of m
edia spending which maximizes the return on investment. The informatio
n which must be supplied for the calculation is commonly available, an
d we express the optimal expenditure level in terms which are meaningf
ul to media planners. We show that when maximizing return on investmen
t not all of the allocated media budget should be spent.