What is the Advertising Multiplier Effect?
As a brand marketer & advertiser, you want your advertising investment to move the needle in a one-to-one ratio....or a Dollar Investment to Brand Ad Recall improvement ratio.
Though when you compare your investment and change in Ad Recall among competitors, the story may not be so clear.
Why is it that some brands can invest less in advertising and get a bigger gain in Ad Recall, while other brands invest larger amounts in advertising and struggle to move the needle on Ad Recall?
The Advertising Multiplier Effect is the influence that a brand's quantity of in-market product has on multiplying your advertising with no extra effort.
That's right, a large market presence of a brand's product acts as an Advertising Multiplier Effect, magnifying the power of every one of your advertising dollars.
The Advertising Multiplier Effect can also be the result of your brand's fan base; the influence by Fan Base is often more prevalent in luxury categories & segments.
Don't let diagnosing the Advertising Multiplier Effect frustrate you.
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