We examine the situation in which hourly data are available for designing advertising-response models, whereas managerial decision-making can concern hourly, daily or weekly intervals. A key notion is that models for higher frequency data require the intra-seasonal heterogeneity to be addressed, while models for lower frequency data are much simpler. We use three large, actual real-life datasets to analyze the relevance of these additional efforts for managerial interpretation and for the out-of-sample forecast accuracy at various frequencies.

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doi.org/10.1016/j.ijforecast.2016.06.005, hdl.handle.net/1765/93895
Econometric Institute Reprint Series
International Journal of Forecasting
Department of Econometrics

Kiygi Calli, M., Weverbergh, M., & Franses, P. H. (2017). Modeling intra-seasonal heterogeneity in hourly advertising-response models: Do forecasts improve?. International Journal of Forecasting, 33(1), 90–101. doi:10.1016/j.ijforecast.2016.06.005