How Corporate Cultures Drive Advertising Budgets: Best Practices combine Heuristics and Algorithmic Tools
Join us on Wednesday, January 20 for the first ARF webcast of 2016!
At this webcast you will learn about the best voted Journal of Advertising Research paper of 2014. The paper—co-authored by Douglas West of King’s College London, John B. Ford of Old Dominion University, Paul W. Farris of the University of Virginia— dug deeply into the process and culture of setting advertising budgets by surveying the methods used by U.S. advertisers to set advertising and promotions budgets and the effects of culture, risk and organizational experience on these choices. Their findings suggested that heuristics provide checks on analytically based budget methods and may also help managers deal with risks. “The budgeting process is not as rational as economists and management scientists would prefer and rarely can be demonstrated to produce profit-optimizing budgets,” the authors assert. ”Recognizing the role that heuristics play … is the first step toward a much-needed process improvement.”
John B. Ford, PhD – Executive Editor (North America), Journal of Advertising Research
Distinguished Fellow, Academy of Marketing Science,
Director, Ph.D. Program in Business Administration, Eminent Scholar and Professor of Marketing and International Business, Strome College of Business