Our most recent white paper explores the challenges that advertising researchers face when attempting to validate in-market sales performance based on pretesting results. Focusing on the McDonald’s brand, and drawing upon 180,000 interviews collected over several years, this study reports the relationship between TV ad quality and real-world sales figures.
We have determined that just four variables explain nearly half of the sales growth that McDonald’s reported to investors, with all four being directly related to the quality of the advertising creative. Importantly, our model does not include a measure of media ad spending, which sets this study apart from traditional marketing mix models that tend to rely heavily on the media spend variable. Instead, our modeling technique allows for a more clear statement about the importance of the creative quality variable, and how this helps quantify the contribution that advertising can make to a firm’s ROI.