How to read it
“Matches” means within 25% of the published figure (or inside the stated band); “Close” within 50%; “Off” further away. Where Countermove departs from the research, the note says by how much and why. Some departures are deliberate choices for play; some are gaps. 8 checks are close and 2 are off.
The method for each check is in its note; the code is src/arena/v1/validation.ts. For what each mechanism does, see How Countermove works.
Advertising
How much extra volume media buys, how long it lasts, and how the money should be split.
| Claim | Research | Countermove | Verdict |
|---|---|---|---|
| Short-run advertising elasticitySethuraman, Tellis & Briesch (2011), Journal of Marketing Research, meta-analysis | 0.12 | 0.10 | Matches |
| Long-run advertising elasticitySethuraman, Tellis & Briesch (2011) | 0.24 | 0.30 | Close |
| Carry-over: share of a quarter's advertising effect still there the next quarterAssmus, Farley & Lehmann (1984), Journal of Marketing Research | 0.47 | 0.88 | Off |
| Long-run split of brand building to activation, averaged over brandsBinet & Field (2013), The Long and the Short of It, IPA (an average across IPA cases, not a recommendation) | 60:40 | 60:40 | Matches |
| How much to spend: the profit-maximising advertising-to-sales ratio is the gross margin times the advertising elasticityDorfman & Steiner (1954), American Economic Review; elasticity from Sethuraman, Tellis & Briesch (2011) | About 12% of sales (each category's gross margin × long-run elasticity 0.24) | 9.0% over two years; 15.8% over three | Close |
Short-run advertising elasticity: method and notes
Media raised 10% every quarter; the change in first-quarter units, in all seven categories over 5 worlds. Countermove is at 83% of the published average. Seven in ten purchase occasions come from habitual buyers who do not react to media in the quarter, and brand media mostly works through memory, which builds slowly. The game is deliberately cautious here so that media never looks like a quick fix; later studies of TV advertising in packaged goods also find short-run elasticities well below 0.12 (Shapiro, Hitsch & Tuchman 2021, Econometrica).
Long-run advertising elasticity: method and notes
Same test, read on units a year later with the plan still running. Once memory has built, Countermove lands a little above the published long-run average. Going dark costs share for years, as Ehrenberg-Bass and Kantar find for brands that stop advertising.
Carry-over: share of a quarter's advertising effect still there the next quarter: method and notes
One quarter of doubled media on the balanced mix, then back to normal; the extra units the next quarter as a share of the extra units in the burst quarter. Countermove carries more than the average: purchase habit carries any extra sales forward, not only advertising's, and brand media keeps feeding memory, which Assmus et al.'s single-equation models count only in part. A year after the burst, 56% of the first quarter's lift remains for brand media against 49% for activation, which is the slow and fast pattern the research describes.
Long-run split of brand building to activation, averaged over brands: method and notes
The same media budget all year, split from 20:80 to 90:10; two-year net income for each split. Countermove lands near the IPA average: profit peaks at 60:40, and share a year on peaks at 60:40. Activation in Countermove fades within the quarter and only reaches switchers, while brand media builds memory for years. 60:40 is an average across many brands, not the answer for any one of them: Binet & Field's later work (Effectiveness in Context, 2018) finds the best split ranges up to about 80% brand by category, position and horizon, and in the game the Advisor's optimiser works out each brand's own split.
How much to spend: the profit-maximising advertising-to-sales ratio is the gross margin times the advertising elasticity: method and notes
The standard plan with the media budget held from 4% to 17% of net sales, gross profit after media summed over two and over three years; the A&P-to-sales ratio of the budget that earns most, in all seven categories over three worlds. Over two years, Countermove's most profitable media level is leaner than what the theory and the category's own margin suggest (soft drinks 8%, energy drinks 7%, snacks 14%, beauty & personal care 8%, household care 4%, coffee 12%, oral care 11%), and the Advisor's optimiser, which also sets price and deals and judges on two years from the quarter in hand, often recommends a leaner budget still. Over three years the most profitable level rises to 16%: brand memory keeps paying after a two-year window closes, so most of the gap is the horizon, not the money being wasted. Going dark now loses about what the research finds (Ehrenberg-Bass: sales 16% down after a year without mass media, 25% after two; Countermove: 17% and 27%), because brand memory settles on a floor plus the share of voice rather than falling towards nothing. The optimiser's leaner answer mostly comes from the price rise it picks alongside: a dearer brand converts fewer price-led shoppers, so each euro of media wins less. So read Countermove's media advice as "over two years, lean wins more often than the industry norm suggests"; over a longer horizon the norm holds.
| Brand : activation | Profit index | Value share a year on |
|---|---|---|
| 20:80 | 9 | 17.5% |
| 30:70 | 39 | 17.9% |
| 40:60 | 66 | 18.2% |
| 50:50 | 84 | 18.5% |
| 60:40 (best) | 93 | 18.6% |
| 70:30 | 92 | 18.5% |
| 80:20 | 81 | 18.3% |
| 90:10 | 60 | 17.9% |
Creative quality
Media money is not all equal: how much the ad itself decides, who gets the credit, and how it wears.
| Claim | Research | Countermove | Verdict |
|---|---|---|---|
| Share of the variation in an ad's effect that comes from the creativeNielsen (2017), When it comes to advertising effectiveness, what is key? (about 500 consumer-goods campaigns; reach 22%, brand 15%) | 47% | 31% | Close |
| People who recall an ad and link it to the right brandIpsos, Power your ads with Brand Link (75+ categories) | About half | 50% | Matches |
| Wear-out: rational and tactical ads wear faster than emotional ones, and wear is modest on averageKantar, The art of creating ads that last; Ipsos, Advertising wear-out | Direction; a third of TV ads lose ground in a second burst | 11% / 7% / 4% a quarter | Matches |
| Rational ads sell more now; emotional ones more over the long runBinet & Field (2013), The Long and the Short of It, IPA | Direction | Rational +0.02 pts in the launch quarter; emotional +0.40 pts by the end of year two | Matches |
| Emotional brand building lowers price sensitivityBinet & Field; Les Binet in Marketing Week (Felix: price elasticity fell as the brand moved from cheap to premium) | Direction | Price sensitivity −7.6% after two years (emotional against rational) | Matches |
Share of the variation in an ad's effect that comes from the creative: method and notes
Campaigns drawn by the default process: the spread of what a euro of brand media builds (1 s.d. of 0.43 on a log scale) against the spread of media money across the brands and budget options of three reference markets (0.64). Countermove gives the creative a smaller part than Nielsen on purpose: with the full weight, the luck of one campaign's draw would decide too many games. Process (budget, pre-testing, brand codes) shifts the odds; it never guarantees.
People who recall an ad and link it to the right brand: method and notes
Average linkage across campaigns drawn by the default process. Below average, part of the shortfall builds memory for the most mentally available rival, usually the leader. The share is Countermove's assumption: sponsorship research finds people credit prominent brands they never saw (Johar & Pham, 1999), but no study gives a figure for ads; the debrief shows the money.
Wear-out: rational and tactical ads wear faster than emotional ones, and wear is modest on average: method and notes
Loss per quarter on air after the first quarter for an average rational, balanced and emotional ad; weak ads wear faster and strong ones slower. Kantar finds no clear link between an ad's age and its performance on average, so the rates are kept low.
Rational ads sell more now; emotional ones more over the long run: method and notes
A new campaign in Q1 on each approach, same media money, 9 worlds; value share differences.
Emotional brand building lowers price sensitivity: method and notes
The same campaigns as above, read on the brand's sensitivity to price and deals at the end of year two.
Price and promotion
How volume responds to shelf price and to deals, and what a deal costs afterwards.
| Claim | Research | Countermove | Verdict |
|---|---|---|---|
| Average brand-level price elasticityBijmolt, van Heerde & Pieters (2005), Journal of Marketing Research, 1,851 elasticities | −2.62 | −1.83 | Close |
| Deals move volume more than the same shelf-price changeBijmolt, van Heerde & Pieters (2005); Jedidi, Mela & Gupta (1999), Marketing Science | Deal elasticity above shelf-price elasticity | −2.45 on deal vs −1.53 on shelf (×1.6) | Matches |
| A deal borrows from later sales: a post-deal dip, smaller than the bumpvan Heerde, Leeflang & Wittink (2000), Journal of Marketing Research; van Heerde, Gupta & Wittink (2003), Journal of Marketing Research | Dip present, smaller than the bump | Bump +38.2%, next quarter −11.9% (35% of the bump); retailer orders −49% | Matches |
Average brand-level price elasticity: method and notes
A one-off shelf-price move (+3% and −5%), read at Q4, averaged over seven categories. Countermove's shelf price bites 70% as hard as the published mean. Much of the data behind that mean is weekly store data, where short price cuts supply most of the price variation, and those move volume more than a lasting shelf-price change. Countermove's deal response is below (−2.45). A lasting move reaches about the category's stated elasticity once habits adjust (the table below), and more in the most promoted categories (coffee, snacks), where frequent deals have trained shoppers to watch price; habitual buyers react to a price above what they are used to, and past about 10% above the market they react with the full elasticity, so taking price every quarter costs far more volume than taking it once.
Deals move volume more than the same shelf-price change: method and notes
Deal elasticity is measured the way store studies do it: the rate of sale in deal weeks against regular weeks, over the depth of the discount. Shelf elasticity is the first-quarter response to a shelf-price move.
A deal borrows from later sales: a post-deal dip, smaller than the bump: method and notes
Deep deals with stock loading in Q1 against light deals, every category and world. Shoppers who stocked up buy less the next quarter, and retailers who were loaded order far less. The bump splits three ways, as van Heerde, Gupta & Wittink (2003) describe: shoppers switching from rivals, loyal buyers buying ahead (all of which comes back as the dip, 35% of the bump here), and a little new category volume.
| Category | Stated | Measured, Q1 / Q4 | Deal elasticity | Q4 vs stated |
|---|---|---|---|---|
| Soft drinks | −1.7 | −1.66 / −1.77 | −2.55 | Matches |
| Energy drinks | −1.5 | −1.28 / −1.45 | −2.14 | Matches |
| Snacks | −1.7 | −1.93 / −2.25 | −3.02 | Close |
| Beauty & personal care | −1.5 | −1.43 / −1.93 | −2.39 | Close |
| Household care | −1.6 | −1.41 / −1.88 | −2.19 | Matches |
| Coffee | −1.7 | −1.94 / −2.33 | −2.97 | Close |
| Oral care | −1.2 | −1.07 / −1.22 | −1.87 | Matches |
Brands and market shares
Whether brands grow the way Ehrenberg and Sharp describe, and whether shares move at a believable speed.
| Claim | Research | Countermove | Verdict |
|---|---|---|---|
| Double jeopardy: smaller brands have fewer buyers who also buy slightly less oftenEhrenberg, Goodhardt & Barwise (1990), Journal of Marketing; Sharp (2010), How Brands Grow | Holds across categories | Holds in 7 of 7 categories | Matches |
| Market shares are stable: most quarterly moves are smallLal & Padmanabhan (1995), Marketing Science: most brands' shares are stationary. The point bands are Countermove's reading of that finding | Median under 1 point, 99th percentile under 4 points | Median 0.39, 90th 0.95, 99th 1.54 points | Matches |
Double jeopardy: smaller brands have fewer buyers who also buy slightly less often: method and notes
For each category, the three brands at the end of the year: purchase frequency must rank the same way as penetration, and penetration must vary far more than frequency (in Countermove, 3.1× against 1.4× on average).
Market shares are stable: most quarterly moves are small: method and notes
Every fourth combination of the quick calls, held for a year, in four markets: 768 quarterly moves of the player's value share. The largest single move was 2.34 points; nine plans in ten moved share by under 2.2 points over the year.
| Category | Penetration | Purchases per buyer | Holds |
|---|---|---|---|
| Soft drinks | 47% / 22% / 20% | 3.71 / 2.48 / 2.40 | Matches |
| Energy drinks | 27% / 15% / 9% | 4.62 / 3.00 / 2.64 | Matches |
| Snacks | 62% / 30% / 27% | 3.40 / 2.41 / 2.36 | Matches |
| Beauty & personal care | 45% / 14% / 11% | 1.31 / 1.18 / 1.17 | Matches |
| Household care | 64% / 18% / 17% | 1.57 / 1.30 / 1.30 | Matches |
| Coffee | 55% / 23% / 20% | 2.30 / 1.76 / 1.73 | Matches |
| Oral care | 65% / 27% / 18% | 1.48 / 1.28 / 1.25 | Matches |
Finance and accounting
Whether the money looks like the industry's, and whether the books add up.
| Claim | Research | Countermove | Verdict |
|---|---|---|---|
| The P&L adds up: net sales less every cost line equals net incomeAccounting identity | Exact | Largest gap under one part in a million | Matches |
| Value and volume shares sum to 100%Definition of market share | Exact | Largest gap under one part in a million | Matches |
The P&L adds up: net sales less every cost line equals net income: method and notes
Checked for every company in 3,528 simulated quarters: all seven categories in all seven markets, on a quiet plan and an aggressive one, in the three-brand world and in the four- and five-brand worlds of team play. Gross sales less trade spend equals net sales: largest gap under one part in a million.
Value and volume shares sum to 100%: method and notes
Same quarters as above. Shares are measured after the post-deal dip, so a deal's hangover shows in share too.
| Category | Annual reports | Countermove | Verdict |
|---|---|---|---|
| Soft drinks | Britvic FY2024: 42.6% (gross profit £809.8m on revenue £1,899.0m) | 54% / 54% | Off |
| Energy drinks | Celsius FY2025: 50.4%; Monster Beverage FY2025: 55.8% | 55% / 55% | Matches |
| Snacks | Mondelez FY2024: 39% | 42% / 41% | Matches |
| Beauty & personal care | Unilever FY2024: 45%; Beiersdorf FY2024: 61% | 59% / 58% | Matches |
| Household care | Henkel FY2025: 51.1%; P&G FY2025: 51.2% | 48% / 47% | Close |
| Coffee | JDE Peet's FY2024: 36.9% (gross profit €3,257m on sales €8,837m) | 39% / 35% | Matches |
| Oral care | Colgate-Palmolive FY2025: 60.1%; Haleon FY2025: 64.2% | 62% / 61% | Matches |
Where margins miss: Soft drinks, 11 points above the reports; Household care, 3 points below the reports. Where Countermove is above, the gap is real: its unit costs in those categories are set too low against companies that make their own product, so the absolute margin is too generous. Where Countermove is below, its costs or trade terms run heavier than the reported companies', so the absolute margin is too thin. Comparisons inside a game are less affected, because the rivals' costs are set the same way.
What this page does not show
- Research ranges are wide. A published average is a centre, and individual brands sit well either side of it.
- The checks use Countermove's own markets and fictional brands. They show the engine behaves like the research says markets behave; they do not forecast any real brand.
- Numbers can move slightly between builds when the engine is tuned. The date at the top is when they were last measured.