Which of the following methodologies helps in evaluating ad effectiveness on sales?

The methodology that evaluates ad effectiveness on sales by comparing baseline and incremental sales is particularly effective in measuring the direct impact that advertising has on actual sales figures. This approach involves analyzing sales data before and after an advertising campaign to establish a baseline—essentially, the expected level of sales without the influence of the ad. By measuring the incremental sales, or the additional sales that can be attributed to the ad campaign, it provides a clear and quantifiable way to assess how effective the advertising has been in driving sales.

This method offers a precise and data-driven assessment that is crucial for understanding the return on investment (ROI) of advertising spends. It allows businesses to discern whether an increase in sales is genuinely a result of their advertising efforts or influenced by other external factors like seasonal trends or market changes. By capturing this critical relationship, this methodology enables more informed decisions about future marketing strategies and budget allocations.

Other methodologies such as focus group interviews and surveys among customers can provide qualitative insights and opinions regarding advertising campaigns, but they do not directly measure the impact on sales. In-store promotion effectiveness analysis can track the success of specific promotions, but it might not encompass the broader context of an ad campaign's contribution to overall sales volumes. Thus, the comparison of baseline and incremental