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Advertising and Promotion Investment: What Is the Right Level?

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  • Forker, Olan D.

Abstract

Agricultural economists in both the United States and Canada have been trying to answer this complicated question for over 12 years. Although there is no simple answer t researchers generally agree that the "right level" of advertising investment is a function of the promotion program's objective. The actual level of advertising investment in 1987 totaled $490 million in 22 dairyproducing countries. The United States t Canada t Australia t and the United Kingdom have similar levels of promotion investment per unit of milk production ($0.12 to $0.17 per hundredweight). A review of economic studies "indicates commodity advertising investment in the U.S. is probably less than optimum at its current level of around $145 million.

Suggested Citation

  • Forker, Olan D., 1990. "Advertising and Promotion Investment: What Is the Right Level?," Staff Papers 121547, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudasp:121547
    DOI: 10.22004/ag.econ.121547
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    Cited by:

    1. Goddard, Ellen W. & Conboy, Paula, 1993. "Optimal International Promotion Expenditure for Differentiated Products," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(01), pages 1-13, April.

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    Keywords

    Marketing;

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