Abstract
ABSTRACT Audience deficiency units (ADUs) have become a standard part of ‘making good’ the guaranteed media delivery for linear TV. However the impact of unadjusted linear TV ADUs on marketing mix models (MMM) has not been studied. This research illustrates how unadjusted ADUs in MMM can lead to artificially inflated return on advertising spend (ROAS) and inaccurate efficiency calculations. Utilizing data from a national consumer packaged goods brand, the paper finds that using unadjusted linear TV ADUs can artificially inflate ROAS, prescribe an incorrect investment allocation at constant spend and potentially reduce case units and net returns. These findings support the need for standardized treatment of linear TV ADUs in MMM and emphasizes the significance of accurate data for evaluating media channel performance and optimizing returns.
Published Version
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