In the age of digital advertising, consumers are bombarded with an overwhelming number of advertisements from various channels every day. While repeated exposures to advertising can capture consumers' attention and stimulate their purchases, it is crucial to recognize that excessive advertising campaigns can cause consumer fatigue, diminished responsiveness, or even irritation. In the present study, our objective is to formulate the optimal advertising policy considering the effect of consumer ad fatigue. By introducing an attenuation factor that accounts for the negative impact of excessive advertising expenditure, we modify the dynamics of goodwill in the classical Nerlove-Arrow model. This modification results in the advertising response function exhibiting an inverted U-shaped curve with respect to the advertising expenditure. Our analysis indicates that when consumers experience ad fatigue, it is advisable for the firm to proportionally reduce its advertising expenditure in all time periods. However, the firm should maintain its original direction of trajectory of optimal advertising expenditure despite the presence of consumer ad fatigue.

中文翻译：

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考虑消费者广告疲劳的最佳动态广告政策


在数字广告时代，消费者每天都受到来自各种渠道的大量广告的轰炸。虽然反复接触广告可以吸引消费者的注意力并刺激他们的购买，但重要的是要认识到，过多的广告活动会导致消费者疲劳、响应能力下降，甚至刺激。在本研究中，我们的目标是考虑到消费者广告疲劳的影响制定最佳广告政策。通过引入一个解释过度广告支出负面影响的衰减因子，我们修改了经典 Nerlove-Arrow 模型中的商誉动态。此修改导致广告响应函数相对于广告支出呈现倒 U 形曲线。我们的分析表明，当消费者感到广告疲劳时，建议公司在所有时间段内按比例减少其广告支出。然而，尽管存在消费者广告疲劳，但该公司仍应保持其最佳广告支出的最初轨迹。