Econometrics is now being used by more companies than ever to address an ever growing set of questions. Econometrics Explained 2’s rationale is to enable readers to hold a conversation about econometrics confidently, not to build their own models.
Econometric analysis has played a key role over the last thirty years in helping establish how marketing and communications activity has benefited a wide range of brands. It has enabled us to show the Return on Investment (ROI) of a range of media and marketing inputs. Its role as a hypothesis testing mechanism has developed our understanding of the way these inputs work.
This paper provides an introductory guide to what econometric techniques can and cannot be used for, the planning and processes required to undertake an effective econometric analysis and explains the model development and analysis outputs.
Written by Louise Cook, one of the UK’s leading econometricians, it features practical examples from the IPA’s Effectiveness Awards databank.