Adstock is an index that measures the contribution of advertising to sales.
It represents a prolonged effect of advertising that affects consumer buying behavior and the recall of the brand itself.
Furthermore, it is a model that represents how the response to advertising grows and decays in consumer markets.
Advertising expands consumption in two ways:
- Remind: consumers in the market to influence their immediate brand choice;
- Educate: to increase brand awareness and significance.
When measuring adstock, one also determines the effectiveness of marketing.
How to use adstock
Adstock is a model that was initially used for planning campaigns advertising.
Subsequently and still, it is used to measure the contribution of advertising on baseline sales over the long term, building brand loyalty.
When brand recall persists, sales also develop in the absence of promotional activity.
Thanks to adstock, there is an increase in sales resulting from the active presence of a brand's memory.
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