The Influence of Advertising on a Company’s Share Price.

Marketers have achieved significant advancements in measuring the immediate effects of advertising campaigns on consumer behavior. While these findings are valuable, they do not encompass long-term indicators, such as the overall value of a company. Consequently, organizations remain uncertain regarding the actual worth of their marketing expenditures, including advertising. This study consolidates findings from over 250 journal articles that examine the influence of advertising on company value. The authors explore the rationale behind the expected impact and analyze the circumstances that lead to positive, neutral, or negative outcomes. Additionally, they investigate the reciprocal relationship, detailing how fluctuations in company value can influence future advertising budgets.