Q. Explain about Return on Investment?
Return on Investment: - Return on investment method is completely different method from other methods. This process consider advertising expenditure as an investment and not as routine revenue expenditure. Similar to other investment of the company advertising is also expected to give certain returns. Advertising can build-up an intangible asset that is known as Brand Equity. This method correlates sales as well as profit with advertising expenditure. It is based on awfully logical consideration but in practise it is awfully difficult to assess the return provided by advertising because the returns are often spread over a long period of time because of its complexity it is not used in real life.