title: How to create an ADBUDG Economics Marketing Model with R
body: <p>So I am trying to recreate <a href="http://blogs.adobe.com/digitalmarketing/industries/media-and-entertainment/your-paid-search-is-cannibalizing-your-natural-search-use-r-to-predict-how-much-you-should-be-spending/" rel="nofollow">this blog post</a>, but the author does not give very detailed steps for use with <strong>R</strong>.</p>
  
  <p>So, I have <a href="http://pastebin.com/rA5pSMzr" rel="nofollow">this set of data</a> which contains total paid search spend, branded spend, non-branded spend, paid clicks (marked simply as clicks), organic visits, total visits, visitors and transactions for an ecommerce site.</p>
  
  <p>I attempted to do the first part by myself and was given this output:</p>
  
  <pre><code>&gt; fit &lt;- lm(organic.visits ~ visits + clicks +visitors + transactions, data=mydata)
  &gt; summary(fit)
  
  Call:
  lm(formula = organic.visits ~ visits + clicks + visitors + transactions, 
      data = mydata)
  
  Residuals:
      Min      1Q  Median      3Q     Max 
  -5916.6 -1100.9  -237.4   811.6  8444.0 
  
  Coefficients:
                 Estimate Std. Error t value Pr(&gt;|t|)    
  (Intercept)  7028.56997  502.55911  13.986  &lt; 2e-16 ***
  visits          1.15842    0.04406  26.295  &lt; 2e-16 ***
  clicks          0.46578    0.09884   4.712 3.39e-06 ***
  visitors       -1.13322    0.04442 -25.513  &lt; 2e-16 ***
  transactions   -1.11505    0.19823  -5.625 3.49e-08 ***
  ---
  Signif. codes:  0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1
  
  Residual standard error: 1903 on 399 degrees of freedom
  Multiple R-squared:  0.8236,    Adjusted R-squared:  0.8219 
  F-statistic: 465.8 on 4 and 399 DF,  p-value: &lt; 2.2e-16
  </code></pre>
  
  <p>First: I want to know if I did this correctly, or if there is a better way to do it.</p>
  
  <p>Second: I want to know how to do the second part of the post which is the ADBUDG Economics Marketing Model. I tried to search online, but have not found anything useful in helping meet complete this part of the analysis. The author does not give any direction on how to do it.</p>