Investment In Advertising Research Articles

How to Choose the Optimum Advertising Investment

In this paper, the author builds a step-by-step approach to the problem of investing the ‘right level’ of funds in advertising. In particular, he deals with two well-recognized problems: cases where the advertising continues to produce sales results in periods after the initial investment and accounting period; and cases where it is impossible to know which advertisement produces which customers and which sales.

Economic Evaluation of Milk Advertising

Increasing investments in advertising and promotion programs for fluid milk are being made each year by United States dairy farmers. Concomitantly, demands are increasing on industry officials to account for the efficacy of these programs. Thus, the need for an evaluation of the economic effectiveness of these promotional programs is accentuated. Alternative evaluative methodologies are reviewed followed by an empirical investigation of the economic effectiveness of milk advertising in New York State. In particular, this study examines the economic effectiveness of generic fluid milk advertising in three New York State markets. The response of fluid milk sales to media advertising expenditures in each market shows a positive effect of advertising on sales. Optimal advertising investments are determined, and prescribed spatial allocations of the media advertising budget are suggested.

Measuring the effects of corporate advertising

Over 40 years the Dupont Co. has, according to Robert Crass, made a handsome financial investment in corporate advertising. But, “the number of executives who have asked what this investment has returned to the company has been legion,” he adds. So, beginning in the late 1930s Dupont began to develop measures of the effects of its corporate advertising. Grass describes how Dupont moved away from general measures of how favorably the public views the corporation, to specific measures of changes in beliefs and evaluation by people with controlled exposure to Dupont corporate advertising. Results show that corporate advertising can change people's beliefs about a company, but. Grass adds, there still is no answer to the question of how much that change in belief is worth in financial terms.

A Perfect Measurement of Advertising's Contribution to Marketing

The author of this article is very sympathetic with the views of all advertisers who want to know what they are “getting” for their investment in advertising. But he is also frustrated, because he does not know the answer … and he does not think anyone else does. In fact, he is so frustrated that he proposes a “perfect measurement” of advertising's contribution to marketing.