Summary
Contents
Subject index
This book is based on state-of-the-art research, including pure single-source research, consumer panel research, a predictive technique to pre-test television commercials, econometric evaluation, and studies of market and brand aggregates. Although the data in the book is based on sound samples and proven measurement techniques, they are explained with the simplest mathematics and the clearest prose.
Can Doses of Advertising Produce Doses of Profit?
Can Doses of Advertising Produce Doses of Profit?
We saw in Chapter 6 that advertising, when its cost is compared with the value of the sales it produces over a year, only very rarely pays for itself. This does not mean that advertising is a profligate and self-indulgent activity, although ineffective campaigns are totally wasteful and this is why the advertising industry does its best to detect and eliminate them.
When we conclude that, in the medium term, advertising can produce strong sales but the sales increases are almost always unprofitable, we must look at this in a broader context:
- Advertising should be seen as a part of the expense of doing business, in the same way as a manufacturer's ...
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