Advertising Allowance

Filed Under » , , ,
Dictionary Says

Definition of 'Advertising Allowance'

Money that a product manufacturer or service provider pays to a retailer to get the word out about a product. The company may establish requirements for the retailer to receive the allowance, such as getting the company's approval of the advertisement before it is displayed and providing proof that the advertisement was made.

By helping the retailer pay its advertising costs, the company's advertising allowance gives the retailer an incentive to carry that product.

Investopedia Says

Investopedia explains 'Advertising Allowance'

For example, let's say an educational toy store carries a board game that helps children learn about personal finance. The toy store publishes a quarterly catalog in which it advertises the board game by showing a photo of children playing the game and providing a one-paragraph description of the game. The board game manufacturer would typically pay an advertising allowance to the toy store to help offset the expense of marketing the board game in the catalog. These expenses might include a fraction of the catalog's printing and mailing costs or discount in the board game's wholesale cost.

Articles Of Interest

  1.

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.

  2. Advertising, Crocodiles And Moats

    Memorable advertising is a brick in the fortress that keeps competitors at bay.

  3. Don't Be Misled By Investment Advertising

    Investment companies and brokers want to sell. Unfortunately, this can result in promotional material that is not entirely frank, or far worse, truly misleading.

  4. The Marketing Director's Pitch

    Are your shoulder's wide enough to carry a company's reputation?

  5. The Green Marketing Machine

    Don't let corporations greenwash their dirty laundry. Learn how to spot a phony.

  6. Generational Marketing: Harvest The Whole Family Tree

    Attract new clients by tailoring your message to specific age groups.

  7. Small Business: It's All About Relationships

    Rather than be a jack-of-all-trades, an owner should rely on a network of trusted experts.

  8. Top 5 Ways Restaurants Make You Spend More

    The next time you eat out, watch for these common restaurant tricks that undermine your dining budget.

  9. Buffett And Goldman Sachs Do Sweetheart Deal

    Goldman Sachs announced March 26 that it will issue to Berkshire Hathaway in October the number of shares equal to Warren Buffett's profit from the 2008 warrants he got to purchase 43.5 million ...

  10. In Small Business, Success Is Spelled With 5 "C"s

    Incorporating these steps will help your business thrive in a competitive market.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  2. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  3. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  4. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.

  5. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.

  6. Chartalism

    A non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=2cbc9436255f33387d9a5d16019e79b8