Abstract
Every year companies spend billions of dollars on advertising in an effort to induce consumers to purchase their goods. Yet, unlike almost any other investment that a company makes, management's advertising allocation decision is made with little, if any, substantive information on the return received from that investment. This research presents a methodology for determining the monetary gains from advertising and provides an estimate of the return to advertising investment for a sample of firms. Substantial gains exist for firms from advertising. This effect is seen to vary by type of industry and is strongly related to other positive strategic decisions of the firm.
| Original language | English |
|---|---|
| Pages (from-to) | 137-145 |
| Number of pages | 9 |
| Journal | Marketing Letters |
| Volume | 3 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - Apr 1992 |
Keywords
- advertising
- marketability
- new products
- research and development