Geometric Adstock Simplified in 6 Steps

In our recently concluded Marketing Measurement Marathon course, a participant asked us if there was any easy to remember code implementation of adstock.

We hence created an intuitive step by step illustration of the Geometric Adstock Implementation.

Geometric Adstock is the ‘hello world’ into the world of adstocks.

The main advantage of geometric adstock is its simplicity and helps build the intuition. It is easy to understand and implement because it only requires estimating one parameter – the decay rate.

Mind you that Geometric Adstock is not the prevalently used in real practice (at least not by us) as its assumption of constant decay rate rarely matches the marketing reality.

The constant decay rate is its main limitation. In reality, the decay of an ad’s impact might not be constant. It could be faster initially and then slow down or vice versa. More robust and flexible methods like Weibull PDF adstock allows for varying decay rates and modeling of lag effects.

We at Aryma Labs use Weibull PDF and we also don’t use correlation to select the best parameter values. We use information theoretic measures like Transfer Entropy.

With that said, we are happy to share the 6 step simple breakdown of Geometric Adstock Implementation.

If you want to know what each line of code does in layman language, feel free to try our MMMGPT (up to 5 queries are free).
https://lnkd.in/gTC6es-G

In it go to ‘chat with code’ and ask “Provide Geometric Adstock code from Aryma Labs repository” (you can also ask for Robyn or Meridian code). You will get line by line explanation in plain English (or translated to other 100+ language).

Also, while the live course is over, if anyone is interested, you can enroll into our ‘take-it-at-your-own-pace’ MMM foundation and MMM advanced courses in our LMS. We are still running the holiday discount.
https://lnkd.in/gpFr8pGv

Happy Learning and Happy Accurate Marketing Measuring 😎