Intangible Marketing Capital
We present several empirical facts about trends in marketing investment in the US. We also present estimates of the private value of brands to firms and aggregate intangible brand capital stocks created by these investments. These investments include the creation and maintenance of a brand name and all its corresponding brand elements (e.g., awareness, reputation, image, etc.), along with the investments in the labor force used to manage and oversee the branding. We then discuss the private benefits to firms from their advertising and the established academic wisdom for the striking magnitude of marketing outlays. Finally, we explore the welfare implications of investments in brand capital.
Dubé acknowledges research support from the Kilts Center for Marketing and the Charles E. Merrill faculty research fund. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.