Efficiency of investments into advertising

Date of publication: September 1, 1995

Abstract:

The present article is the description of applied research, conducted by the Scientific Research Center "V-Ratio" (Moscow) by the order of one of the largest financial companies in Russia. The first chapter of the article gives a brief spetch of the development of the financial market in Russia, and the private investment situation in autumn 1994 within the research period. It was the period when the most agents of the given market faced the problem of sharp decrease of return from investments into advertising. To clarify this question and to work out practical recommendations were the primary objectives of the research project. The second, third and fourth chapters present the results of the three most important blocks of the research, obtained by qualitative and quantitative methods: focus-group, expert estimation of commercials, and surveys. The main conclusion of the research is as follows: the content of advertising campaign of a customer firm does not correspond to the type of its potential clients from the market. Besides during the research one could make a conclusion about the relative depletion of the demand at the segments of the market being researched. Recommendations developed on the basis of the conducted research allowed to stabilize sale at reducing of advertising budget of a customer three times.

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