Investopedia explains 'Advertising-To-Sales Ratio'
Businesses often run a variety of marketing campaigns on different mediums (newspaper, websites, radio, etc.) at one time, which can make it difficult to determine which campaigns, if any, were responsible for new sales. Close tracking of promotions can show which mediums perform better with certain ads, and the advertising-to-sales ratio could give insight into the effectiveness of the advertising spending. Some companies do not require as much advertising, such as utility companies, so comparisons should be made between similar companies. Some advertising campaigns are designed to foster long-term support, so looking only at the short-term results might not reflect the long-term benefits of great advertising.
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