Should Advertising Remain A ‘Short-Term Expense’?

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By Erich Decker-Hoppen
Marketing Accountability Standards Board


Since the inception of our nation — and as recently as 2013 — lawmakers have periodically eyed advertising as a potential source of tax revenues because its long-term effects can make it seem more like an investment than an expense. After studying a wide array of research on the issue, two professors from Loyola Marymount University in Los Angeles have concluded that there is no basis for changing the current treatment of advertising as a short-term expense.

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