Well, this is sort of a multiple time series question. So if you have sales data. And then separately, you have over time product ratings data and they fluctuate over time, as well as of course advertising data, then you run a little model where you control for both. And when you do that, then you will probably find that the ad elasticity is it around 0.1 and the product review elacticy is around 0.7. But I'll be the first one to admit we need more research on that to unpack that more. But it's clearly a very, very valuable area of work, both in academia and practice in the future because it's such a strong driver. I've done a study on digital cameras and found that to be a huge driver. Digital cameras are in constant technology flux as they continue to be improved. Let's say that that Cannon has a technological breakthrough that makes it superior, but it's only supported for a certain amount of time because going to be imitated by the competition. Well, during that period of time that you have that superiority, that's when you have to pump a lot of advertising into the market. And I show that that has creates a stronger long-term effect. And that's precisely because you have the combination of communicating the benefit and being able to deliver a higher benefit.
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Well, this is sort of a
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Well, this is sort of a multiple time series question. So if you have sales data. And then separately, you have over time product ratings data and they fluctuate over time, as well as of course advertising data, then you run a little model where you control for both. And when you do that, then you will probably find that the ad elasticity is it around 0.1 and the product review elacticy is around 0.7. But I'll be the first one to admit we need more research on that to unpack that more. But it's clearly a very, very valuable area of work, both in academia and practice in the future because it's such a strong driver. I've done a study on digital cameras and found that to be a huge driver. Digital cameras are in constant technology flux as they continue to be improved. Let's say that that Cannon has a technological breakthrough that makes it superior, but it's only supported for a certain amount of time because going to be imitated by the competition. Well, during that period of time that you have that superiority, that's when you have to pump a lot of advertising into the market. And I show that that has creates a stronger long-term effect. And that's precisely because you have the combination of communicating the benefit and being able to deliver a higher benefit.
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