| Abstract: | A study of a selection of major US corporations was undertaken to determine how advertising budgets are appropriated. The relationship between profit and sales and the size of the advertising budget was examined to see if advertising allocations are being increasingly arrived at using ‘modern’ techniques such as mathematical decision rules or whether simple rules of thumb are still predominant in practice. Budget allocations for 80 companies to six media and their relations to sales and profit were also evaluated. Advertising budgets were examined in three matched categories: for brand advertising, for corporate advertising and for mixed advertising. |
