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Econometrics



Econometrics is used to measure and understand the effects of above the line (ATL) communications. ATL Communication is with people with whom a business does not have an existing one-to-one relationship, home/email addresses, or phone numbers are not known - so reliance on channels to audiences (TV, radio and online) are needed to communicate with them.

The majority of our clients hire econometricians to analyse the effects of their marketing communications. Econometricians are mostly found within media agencies, who buy media across channels and then plan integrated campaigns, or within specialist companies who provide independent consultancy in this field.

Econometrics can help clients understand the effects of marketing across all channels. For instance, clients can understand if TV has more influence than online banner ads, or if the weather rather than wider economic conditions have had more of an effect on sales.

Techniques commonly used are time series modeling, linear regression and marketing mix modeling. Popular tools include Eviews, SAS, and marketing QED.




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