Is your Advertising an expense or an investment?

There are two camps in viewing advertising. Some people consider it an expense while others regard their advertising campaigns as an investment. The raw truth is that it can be either. To know which, you need to know how many customers your advertising campaign brings you and how much they spend.

If an advertising campaign brings in more profit than you spend on it, then it is an investment

If an advertising campaign brings in less profit than it costs, then it is purely an expense.

Of course, a loss making advertising campaign is still getting your name and brand out in front of an audience, and there is some long-term benefit in this. BUT wouldn’t you rather get paid while keeping your brand in the public eye?

The secret to successful advertising is to find out what does work and what doesn’t. Measure, measure and re-measure!!! Double the advertising that does work and quit that which doesn’t.

About Al

Alistair has managed and built small businesses in a varied industries from agriculture to the web. Years in sales lead to his obsession with marketing.
In his spare time he enjoys time with his family, sails and reads marketing books.
Get more from Alistair on Twitter and Google+.

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  1. […] I have posted before, Measuring the response and income from your advertising campaigns is critical, in order for you to know which ads are working and which are […]

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