The research on it is pretty murky because marketing firms frequently fund research studies but if you poke around at some of the many meta-analysis papers out there I think it’s hard to conclude that advertising is a net profit for big companies, at least in a dollars in dollars out sense. Freakonomics did an interesting episode on the topic in 2020.
For a new brand with zero visibility I’m sure ads gain new customers, but established brands (which make up most of the advertising I see) probably aren’t making much of an impact on their sales with their incessant campaigns.
The research on it is pretty murky because marketing firms frequently fund research studies but if you poke around at some of the many meta-analysis papers out there I think it’s hard to conclude that advertising is a net profit for big companies, at least in a dollars in dollars out sense. Freakonomics did an interesting episode on the topic in 2020.
For a new brand with zero visibility I’m sure ads gain new customers, but established brands (which make up most of the advertising I see) probably aren’t making much of an impact on their sales with their incessant campaigns.