The impact of advertising on promotion of businesses has constantly been researched. These studies suggest that thrust in sales vis-à-vis raise in advertising expenses has declined to about a half over the last 30 years. Some salient observations of a recent study are that consumer response to ads during recession is noticeably higher; newer media like TV provide a better platform than print media; consumer response in case of durable goods is better than for non-durables and advertising is more effective in Europe than North America. Overall, the advertisers need to constantly assess the real effect of their advertising budget.
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Study: Advertising Half as Effective as Previously Thought
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