Effectiveness of TV Advertising

4 April 2015
Examines economics, theories (encoding, memory decay, retention interval, crossover interaction), cultural differences, Proctor & Gamble.

This research reviews the economics of television advertising. Cost-effectiveness is a focus of this review.

In 1992, one of the country’s largest television advertisers, Proctor & Gamble, shocked the major television networks when the company canceled $15 million in television commercial advertising spending in the spring of that year. Proctor & Gamble concluded that its television advertising was not cost-effective; however, the reasons were not all based on the cost of the television commercials. A major factor involved in the problem was that the company had miscalculated the television advertising strategy of its competitors (Brunelli & Schmuckler, 1992, p. 4). One observer in the television industry said of…

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