This study examines the long-term effectiveness of multimedia
advertising in a competitive setting and its implications for budget
allocation decisions, using multivariate persistence methodology. Analysis
of network TV, spot TV, and magazine advertising for the two major
competitors in the U.S. SUV industry suggested that long-run advertising
effectiveness differed considerably among media. These differences were
attributed to the media lifespan, retrieval, and content of the message
they convey. The authors propose that budget allocation decisions should
consider the long-run effectiveness of the different media employed to
increase the productivity of advertising campaigns. They also conduct a
simulation experiment to further investigate long-run sales effects of
alternative allocation strategy scenarios.