AN EMPIRICAL STUDY ON RELATIONSHIP BETWEEN REVENUE AND ADVERTISING EXPENDITURE: EVIDENCE FROM PROCTER & GAMBLE

This study investigates the relationship between advertising expenditure and company revenue using data from Procter & Gamble (P&G) over a 13-year period. Descriptive, correlational, and regression analyses were conducted to determine whether advertising significantly influences P&G’s revenue growth. The findings reveal a strong positive correlation (r = .822, p < .001) between advertisement spending and revenue, suggesting that higher advertising expenditure is associated with increased sales performance. Regression results further indicate that advertising accounts for approximately 67.5% of the variance in revenue. These results reinforce the theoretical argument that advertising plays a crucial role in enhancing brand visibility and driving financial performance. The study concludes with implications for marketing strategy and recommendations for optimizing advertising investments to sustain corporate growth.