Scaling decay of investment efficiency is proportional to the market size

About

To ensure if a state has the higher sales than another state, then it can support higher investments than the other state before decaying to the same degree.

Data

Historical Data (from 2018 till date) related to:

• Sales - @State & brand level
• Spends - @State, brand, and vehicle level

Process

States with higher sales and higher historical spends (by brand and vehicles) should have a slower decay in the ROI curve. This is incorporated by dividing spends by the 80th percentile historical spend in that state and the sales of that state

Output

The economic prior along with the refactored approach is tested by the following steps

a. Impact from ROI curve with spends b. Impact from use curves with spends/investment_axis_scale c. Impact from step a = Impact from step b * investment_axis_scale

Note: investment_axis_scale = sales percentage of brand undera wholesaler * All investment spend for the wholesaler

Case: ROI curves comparison of

States: California vs Texas Brand: Budweiser Vehicle: Facebook