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Fixing Advertising Appropriation Rules in Retail and Manufacturing
A lengthy discussion on advertising budgets argues that tying allocations to gross sales is flawed. Retail can favor a rough 2 percent target, while stores like Wanamaker’s and Gimbel’s show variance. manufacturers may spend 5–25 percent depending on product and market. Past sales are poor predictors. future anticipated sales guide better budgets. Industry tables from Dry Goods Economist illustrate department variances, with department stores averaging about 4 percent and mail order higher. Concludes that a flexible, context-driven approach beats fixed ratios.
MENTIONED IN THIS ARTICLE
W. R. Hotchkin
Cheltenham Advertising Service
New York
Gimbel Brothers
Wanamaker
Wanamaker's
Wanamaker’s
Marshall Field
Mr. Hotchkin
A. W. Shaw Company
Pervent. Groceriea
Ssa
G. C. Sherman
Sherman & Bryan
W. C. Darcy
D'Arcy Advertising Company
8&J. Louis
Pacific Coast