https://onlinelibrary.wiley.com/doi/abs/10.3982/ECTA17674 * Skip to Article Content * Skip to Article Information Working off-campus? Learn about our remote access options Wiley Online Library Wiley Online Library [ ]Search within[This Journal] * Search term[ ] Advanced Search Citation Search * Search term[ ] Advanced Search Citation Search Login / Register [ad] Econometrica Volume 89, Issue 4 p. 1855-1879Econometrica Original Articles TV Advertising Effectiveness and Profitability: Generalizable Results From 288 Brands Bradley T. Shapiro, Corresponding Author * Bradley.Shapiro@chicagobooth.edu Booth, University of Chicago Search for more papers by this author Gunter J. Hitsch, * guenter.hitsch@chicagobooth.edu Booth, University of Chicago Search for more papers by this author Anna E. Tuchman, * anna.tuchman@kellogg.northwestern.edu Kellogg, Northwestern University Search for more papers by this author Bradley T. Shapiro, Corresponding Author * Bradley.Shapiro@chicagobooth.edu Booth, University of Chicago Search for more papers by this author Gunter J. Hitsch, * guenter.hitsch@chicagobooth.edu Booth, University of Chicago Search for more papers by this author Anna E. Tuchman, * anna.tuchman@kellogg.northwestern.edu Kellogg, Northwestern University Search for more papers by this author First published: 26 July 2021 https://doi.org/10.3982/ECTA17674 Citations: 1 All three authors contributed equally. We acknowledge the superb research assistance of Albert Kuo, Jihong Song, Ningyin Xu, and Joe Kook. We thank Liran Einav, Paul Ellickson, Jeremy Fox, Wes Hartmann, Carl Mela, Matt Shum, and Sha Yang for helpful comments. We also benefited from the comments of participants at several seminars and conferences. Results calculated (or derived) based on data from The Nielsen Company (US), LLC and marketing databases provided by the Kilts Center for Marketing Data Center at The University of Chicago Booth School of Business. The conclusions drawn from the Nielsen data are those of the researchers and do not reflect the views of Nielsen. Nielsen is not responsible for, had no role in, and was not involved in analyzing and preparing the results reported herein. Read the full text About PDFPDF Tools * Request permission * Export citation * Add to favorites * Track citation ShareShare Give access Share full text access Share full-text access Please review our Terms and Conditions of Use and check box below to share full-text version of article. [ ]I have read and accept the Wiley Online Library Terms and Conditions of Use --------------------------------------------------------------------- Shareable Link Use the link below to share a full-text version of this article with your friends and colleagues. Learn more. [ ] Copy URL Share a link Share on * Email * Facebook * Twitter * Linked In * Reddit * Wechat Abstract We estimate the distribution of television advertising elasticities and the distribution of the advertising return on investment (ROI) for a large number of products in many categories. Our results reveal substantially smaller advertising elasticities compared to the results documented in the literature, as well as a sizable percentage of statistically insignificant or negative estimates. The results are robust to functional form assumptions and are not driven by insufficient statistical power or measurement error. The ROI analysis shows negative ROIs at the margin for more than 80% of brands, implying over-investment in advertising by most firms. Further, the overall ROI of the observed advertising schedule is only positive for one third of all brands. Supporting Information Filename Description ecta200319-sup-0001-onlineappendix.pdf503.9 KB Online Appendix ecta200319-sup-0002-dataandprograms.zip1.3 MB Data and Programs Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article. 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