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I have been creating marketing mix models using regression analysis for 5 to 10 clients.

Usually
they were for a consumer but I did also for B2B.

In two words: advertising adstock


This model helps me to define the decay and return and carry over advertising effect and also give
me a profound understanding .

The ROI will be a negative figure if the project has lost money. For example, you will end up with a
negative ROI figure in the stock trade in our example, if the purchase price of Microsoft exceeds the
sum of the sales price, commissions and indirect expenses. If you had sold Microsoft for $10,015, for
example, the sale price would have been greater than the purchase price and, at first, the trade
might look profitable. When you subtract the $18 in commissions, however, the net profit from the
trade would be $15 - $18 = -$3, or a loss of $3. Since you lost money, you will not owe any taxes.
ROI would be -$3 / $10,000 *100 = 0.03 percent.

The basic formula for ROI requires taking the return generated by the investment subtracting the
initial investment, and then dividing by the initial investment. Assume a business venture returns
$100,000 and the initial investment was $125,000. The first part of the ROI calculation is $100,000
minus $125,000, which equals -$25,000. The investment resulted in a $25,000 loss. Divided $25,000 by the $125,000 investment, and the result is -0.2, or a negative ROI of 20 percent.

The basic formula for ROI requires taking the return generated by the investment
subtracting the initial investment, and then dividing by the initial investment.The
ROI will be a negative figure if the project has lost money.In some cases, negative
returns on certain investments create tax deductions or reductions, but from
a cash perspective a negative return means outflows exceed inflows either
immediately or over time.

I have been using this kind of analysis for 5 to 10 clients. Regarding the type of marketing, usually
was Consumer.

Two words: advertising adstock


Advertising adstock is a term used to measure the memory effect of advertising carried over from
start of advertising.The theory behind adstock is that marketing exposures build awareness in
consumers minds. That awareness doesnt disappear right after the consumers see the ad but
rather remains in their memory.
Memory decays over the weeks and hence the decay portion of adstock.

The basic formula for ROI requires taking the return generated by the investment subtracting the
initial investment, and then dividing by the initial investment.The ROI will be a negative figure if the
project has lost money.In some cases, negative returns on certain investments create tax
deductions or reductions, but from a cash perspective a negative return means outflows exceed
inflows either immediately or over time.
A negative ROI can give you landmark for where to begin to change your marketing strategy.

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