This research replicates the empirical regularity of the
advertising intensiveness economy of scale, first documented
by John Philip Jones some 25 years ago. While further work
is needed to better understand the conditions that affect the
AI relationship, this research has shown that the asymmetric
relationship between market share and advertising level is
indeed a widespread phenomenon. This article has also demonstrated
the intertwined relationship between advertising
intensiveness and advertising elasticity, reconciling the AI
empirical regularity with the empirical regularity that advertising
elasticities are smaller for larger, mature brands and
larger for smaller, newer brands. Hence, the similarities in
the two research streams in terms of there being considerable
variation across conditions, such as between different categories,
media, and countries, could be because the two concepts
are so closely interrelated.