Working Paper: NBER ID: w30145
Authors: Bart Bronnenberg; Jean-Pierre H. Dub; Chad Syverson
Abstract: We present several empirical facts about trends in marketing investment in the US. We also present estimates of the private value of brands to firms and aggregate intangible brand capital stocks created by these investments. These investments include the creation and maintenance of a brand name and all its corresponding brand elements (e.g., awareness, reputation, image, etc.), along with the investments in the labor force used to manage and oversee the branding. We then discuss the private benefits to firms from their advertising and the established academic wisdom for the striking magnitude of marketing outlays. Finally, we explore the welfare implications of investments in brand capital.
Keywords: No keywords provided
JEL Codes: D21; D22; D24; D4; L1; L15; M3; M31; M37
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Marketing investments (G11) | Brand equity (M37) |
| Brand equity (M37) | Higher revenues (H27) |
| Marketing investments (G11) | Higher revenues (H27) |
| Marketing investments (G11) | Brand capital (M37) |
| Marketing investments (G11) | Firm performance (L25) |