Advertising Appropriation

AAA

DEFINITION of 'Advertising Appropriation'

The portion of the total marketing budget that is allocated to advertising over a specific time period. The advertising appropriation policy for a company may be based on any one of a number of approaches. For example, spending an amount on advertising that is a fixed percentage of sales or based on the ad spend level of the competition.

INVESTOPEDIA EXPLAINS 'Advertising Appropriation'

In practice, the amount of the advertising appropriation is not very easy to establish. This is because of the lack of a definite relationship, in most cases, between the amount of advertising and the company's sales and profitability. Advertising appropriation is also sometimes referred to as advertising budget.

RELATED TERMS
  1. Parasitic Advertising

    A type of marketing that promotes one product at the cost of ...
  2. Infomercial

    A form of television advertisement that acts as a stand-alone ...
  3. Advertising Budget

    An estimation of a company's promotional expenditures over a ...
  4. Comparative Advertising

    A marketing strategy in which a company shows how its product ...
  5. Advertising-To-Sales Ratio

    A measurement of the effectiveness of an advertising campaign ...
  6. Marketing Campaign

    Specific activities designed to promote a product, service or ...
RELATED FAQS
  1. How are fixed costs treated in cost accounting?

    Fixed costs are one of the two major inputs, along with variable costs, in cost accounting that are used by a company's management ... Read Full Answer >>
  2. What are the similarities between product differentiation and product positioning?

    Product differentiation and product positioning are important elements in a marketing plan, and most marketing strategies ... Read Full Answer >>
  3. Why is product differentiation important in today's financial climate?

    Product differentiation is essential in today's financial climate. It allows the seller to contrast its own product with ... Read Full Answer >>
  4. What are the major categories of financial risk for a company?

    There are many ways to categorize a company's financial risks. One possible perspective is provided by separating financial ... Read Full Answer >>
  5. What are the key differences between financial risk and business risk to a company?

    Financial risk refers to a company's ability to manage its debt and financial leverage, while business risk refers to the ... Read Full Answer >>
  6. How has the Internet contributed to the long tail theory of marketing?

    The long-tail theory refers to a marketing strategy that relies on a large variety of slow-moving products to make huge sales ... Read Full Answer >>
Related Articles
  1. Professionals

    Advertising, Crocodiles And Moats

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

    Financial Media 4-1-1 For Investors

    Cut through the information clutter and decipher the useful news from the useless.
  3. Investing

    3 Secrets Of Successful Companies

    Make smart investments by spotting up-and-coming success stories early.
  4. Professionals

    Top Strategies to Attract Elite Clients

    Here's how to think outside of the box when it comes to attracting a high-net-worth client base.
  5. Economics

    Understanding Product Differentiation

    Product differentiation is a marketing tool companies use to distinguish their products or services from the competition’s.
  6. Investing News

    Apple’s New Business: Bonds

    Apple and Oracle are using their massive cash piles to buy up corporate debt. With bond markets looking increasingly rickety, what effect could this have?
  7. Investing Basics

    The Ugly Side of Backing a Crowdfunding Campaign

    Some crowdfunding experiences aren't always clear cut.
  8. Personal Finance

    How Smartphones Are Changing Advertising & Marketing

    Smartphones have connected us so much that the speed and relevance of ad and marketing campaigns have become increasingly important.
  9. Professionals

    What Does Corporate Finance Do?

    Corporate finance is the subset of finance that involves how corporations use leverage to fund their operations and capital purchases.
  10. Professionals

    10 Creative Strategies for Finding Wealthy Clients

    Thinking outside of the box when it comes to meeting prospective wealthy clients can ultimately pay off.

You May Also Like

Hot Definitions
  1. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  2. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  3. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  4. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  5. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  6. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!