| json_metadata | "{"app":"musing/1.1","appTags":["advertising"],"appCategory":"advertising","appTitle":"How can you know if the money a company spends on advertising is profitable?","appBody":"<p>It actually doesn't really matter. Obviously they want to grow their company's revenue through more sales, but it doesn't cost them anything.</p>\n<p>Advertising costs and running costs are written off against the tax the company produces. All profits are taxed by the Receiver of Revenue ,but costs incurred are subtracted. Everything that is spent to obtain the sale including hidden costs are subtracted from their annual tax bill.</p>\n<p>If an advertising campaign costs $1 million and generates $1 or $2 million in profit the company has improved, but hasn't really cost them at the same time. There are a lot of loopholes for these companies to jump through and they use it to their max.</p>\n<p>Companies are very aware of what their revenue is and will target advertising around where and what is needed for growth. Companies are all fighting for their share of the market and advertising is what gives them the edge. Large companies spend millions, but then it is not really their money either.</p>","appDepth":2,"appParentPermlink":"pkem2azaw","appParentAuthor":"jerrybanfields","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}" |
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