Managing Advertising As An Investment

Andy Farr
Millward Brown

Adopting the mindset and tools of the financial investor provides an exciting new way of approaching the difficult question of how to determine the overall size of the communications budget.

There cannot be a marketing person who has not at some point had his budget squeezed in order for the company to meet this year's profit target. When that budget does get squeezed, it is more often than not communications spending that is cut. In a world where it is widely acknowledged that brands are the most valuable assets that most companies possess, does this make sense? No. The awareness, associations and images created by communications activity play a crucial role in defining what a brand is. It does not do this alone great brands are founded on great product experiences but those experiences are framed by the expectations and ideas created by advertising in all its guises.

Future profits