An Advertising Planning and Optimization Model

Major firms serving large numbers of customers typically spend large sums annually on mass-media advertising. In spite of the well-known difficulties in measuring a company's return on advertising with any degree of confidence, there is much a corporation can do in order to manage and optimize the delivery of marketing communications. This talk describes a framework which focuses on improving the coordination of messages and media, and the allocation of advertising resources. This is achieved by developing metrics for estimating the current and potential value to the firm of each market (by program and customer segment) in order to 'balance' advertising delivery to this market 'potential'.