The Strong Link Between Advertising and Stock Value

Given how high the stakes are in the investment world, companies cannot afford to dismiss anything that can boost stock value, and new research finds that means companies must advertise. Get the tools you need to demonstrate the importance of investing in marketing in language that will resonate with C-suite and financial executives.

Utilizing numerous charts and two case studies, this book examines the relationships linking corporate brand communications; corporate image and shareholder value, and quantifies the factors contributing to corporate image. The most important factor is advertising, which weighs in at 30 percent. Consistent ad spending is thus a formidable force in adding to brand value. Other forms of communications, such as public relations, investor relations, employee relations, and social media, contribute an additional 23 percent. With many events, such as economic uncertainty, falling outside the control of a public company, it would be foolish to discount advertising, a relatively sure thing that can improve the company’s valuation.