Freakonomics recently applied their formula of Pop Economics to put a challenge to the efficacy of advertising: “Does Advertising Actually Work?” where the hosts lay out a compelling narrative to suggest that advertising may have little uplift… but it’s just not that simple. “Guess what? Advertising doesn’t work!” makes a great narrative hook for a podcast, but it’s not helpful if what you’re trying to do is measure advertising effectiveness. My concern here is that a lot of decision-makers believe Freakonomics’ general premise that advertising is “guilty until proven innocent.” However, anecdotes aren’t a substitute for a rigorous measurement strategy…
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