Marketers have made good progress in quantifying the impact of advertising campaigns on consumers, at least in the short run. These insights are important but do not address long-term metrics, such as company value. That leaves companies uncertain about the true value of marketing investments, such as advertising. This study synthesizes research from more than 250 journal articles on advertising’s effects on company value. The authors discuss why there should be an impact and review conditions under which the effect is positive, neutral, or negative. Finally, they report on the reverse effect: how changes in company value affect future advertising spending.
Marketers have made good progress in quantifying the impact of advertising campaigns on consumers, at least in the short run. These insights are important but do not address long-term metrics, such as company value. That leaves companies uncertain about the true value of marketing investments, such as advertising. This study synthesizes research from more than 250 journal articles on advertising’s effects on company value. The authors discuss why there should be an impact and review conditions under which the effect is positive, neutral, or negative. Finally, they report on the reverse effect: how changes in company value affect future advertising spending. Read More
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