advertising and business profitability

Sales effectiveness and profitability

When sales of the product increases we considered the campaign successful. The profitability of a campaign is calculated as the ratio of margins associated with increment of sales, to the correspondent advertising cost. TV advertising expenditure by brands is provided by kantar media. Before calculating one must subtract retailer’s margins from the increment turnover. Advertising campaign has a strong positive impact and emerges as the main positive driver of profitability. (Philippe & Anne., 2013)

New Television Advertising Formats: Importance and Types

The significant alternative of 30 second spot and the increasing opportunities provided new platforms; there is an uncountable demand for television sale houses to offer different advertising products. The advertisers are enthusiastic about brand integrated programmes they analyzed that these programmes as the medium to communicate about the brand than in a traditional 30 second commercial, the new television advertising formats is not hard to find and it increasing popularity particularly difficult to put a value, this scenario furnished for research into the planning and implementation of these forms of television advertising and assessment of their effectiveness. (Dr. Eva & Dr. Pedro., 2011)

Traditional (offline) advertising

The elasticity of short run of advertising is commonly found to be around, advertising have long run effects over and above the short run impact with a half of the 3 to 4 weeks, advertising are materialized for long run. we have noticed through advertising studies that the increase in sales during the year of increased advertising and the effect is doubled over next 2 years. Some form of offline advertising especially TV advertising has not decline over last 15 years, new advertising instrument and channels are developed due to social and technological changes.