Advertising Adstock Transformation

Adstock Rate 30% <-- Select adstock level between 0% - 100%.

250

200

150

100 Exposures
Adstock Exposures

50

-
1 3 5 7 9 11 13 15 1 7 1 9 2 1 23 25 27 2 9 3 1 3 3 3 5 37 39 41 4 3 4 5 47 4 9 51

Time (Usually as Weeks)

Adstock
Week Exposures Exposures Formula Sales rsq
1 117.91 117.91 =IF(A26=1,B26,B26+Adstock*C25 1,018 0.55%
2 120.11 155.49 -
3 125.83 172.47 236
4 115.35 167.10 490
5 177.09 227.22 1,760
6 141.65 209.81 443
7 137.89 200.84 1,670
8 - 60.25 526
9 - 18.08 4,522
10 - 5.42 2,524
11 - 1.63 5,268
12 - 0.49 400
13 - 0.15 2,527
14 - 0.04 4,602
15 - 0.01 168
16 - 0.00 2,795
17 - 0.00 4,310
18 158.51 158.51 7,195
19 109.39 156.94 6,277
20 91.08 138.17 2,974
21 79.25 120.70 2,127
22 102.71 138.92 1,081
23 78.49 120.17 4,794
24 135.11 171.16 806
25 114.55 165.90 2,565
26 87.34 137.11 1,223
27 107.83 148.96 4,141
28 125.02 169.71 2,994
29 82.96 133.87 4,079
30 60.81 100.97 1,883
31 83.15 113.44 635
32 - 34.03 1,980
33 - 10.21 1,275
34 - 3.06 4,497
35 - 0.92 1,579
36 - 0.28 2,726
37 - 0.08 1,901
38 129.52 129.54 4,683
39 105.49 144.35 1,686
40 111.49 154.80 1,745
41 107.10 153.54 1,404
42 - 46.06 1,096
43 - 13.82 2,825
44 - 4.15 2,331
45 - 1.24 1,711
46 - 0.37 2,041
47 - 0.11 1,210
48 - 0.03 914
49 - 0.01 4,162
50 - 0.00 1,166
51 - 0.00 4,228
52 - 0.00 914
 https://analyticsartist.wordpress.com/2014/01/31/adstock-rate-deriving-with-analytical-methods/

Exposures
Adstock Exposures
h-analytical-methods/
 Adstock Rate - Deriving with Analytical Method
Instructions
1. Insert Sales and Advertising
2. Open Solver by going to the Data menu and selecting Solver
Regression:
If Solver isn't available then load the Add-in.
Sales = a + b* Advertising
3. Click Solve

Advertising Advertising Model Results

Sales Before Adstock After Adstock Before Adstock
1 1,018 - - Adstock Rate
2 - - - α 2208.1
3 236 - - β 2.5961
4 490 - - SSE 143,063,553
5 1,760 - - Correlation 0.0918
6 443 - - R-Squared 0.0084
7 1,670 - -
8 526 - -
9 4,522 - -
10 2,524 117.91 117.91
11 5,268 120.11 218.33
12 400 125.83 307.69
13 2,527 115.35 371.65
14 4,602 177.09 486.67
15 168 141.65 547.03
16 2,795 137.89 593.56
17 4,310 - 494.42
18 7,195 - 411.85
19 6,277 - 343.06
20 2,974 - 285.76
21 2,127 - 238.03
22 1,081 - 198.28
23 4,794 - 165.16
24 806 - 137.58
25 2,565 - 114.60
26 1,223 - 95.46
27 4,141 158.51 238.03
28 2,994 109.39 307.66
29 4,079 91.08 347.35
30 1,883 79.25 368.59
31 635 102.71 409.74
32 1,980 78.49 419.80
33 1,275 135.11 484.80
34 4,497 114.55 518.37
35 1,579 87.34 519.13
36 2,726 107.83 540.26
37 1,901 125.02 575.04
38 4,683 82.96 561.95
39 1,686 60.81 528.91
40 1,745 83.15 523.72
41 1,404 - 436.25
42 1,096 - 363.39
43 2,825 - 302.69
44 2,331 - 252.14
45 1,711 - 210.03
46 2,041 - 174.95
47 1,210 129.52 275.24
48 914 105.49 334.76
49 4,162 111.49 390.34
50 1,166 107.10 432.24
51 4,228 - 360.05
52 914 - 299.92
Method
Determine Adstock Rate(AD): Use
Solver to Minimize SSE by changing a &
b where 0<AD<1

Advertising

Model Results Time (Usually in Weeks)

After Adstock
83.30%
1632.6
2.4319
133,788,540
Advertising Before & After

0.2697
0.0727

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 4

Advertising Advertising Sales

Before Adstock After Adstock

Sales vs. Advertising Sales vs. Advertising

Before Adstock After Adstock

f(x) = 2.43190573933023 x + 1632.558777815

f(x) = 2.59605585134685 x + 2208.1429924991 R² = 0.0727148184664352
R² = 0.00842991967304629

Exposures Exposures
 Sales

37 39 41 43 45 47 49 51

Sales

Sales vs. Advertising

After Adstock

3933023 x + 1632.55877781597
84664352

Exposures