COST BENEFIT ANALYSIS

Cost benefit analysis basically means analyzing the situation according to the value or profit or gain which will be achieved after taking a decision or making a change in the organization. It basically measures the benefit in terms of money which will be gained by comparing 2 situations.
It gives one a clearer view of the things in the financial front and accordingly give you a chance to save the max by not compromising on the result. But here we see that it does not measure qualitative factors like environmental change or comfort level etc..

Cost benefit analysis does not fit into advertising properly.No doubt it cannot be ignored totally as managing ones cost to gain the max. has to be done by everyone but in advertising where there are many human elements involved at the back of adverts , one cant measure the return on investment on that advert.

There is a non ending debatable statement which i have heard many a times is that " spending on advertising is an expense or an investment? " So i think this ends it all , we can argue on it till no end that if advertising is an expense for companies, then why do these companies spend so much on it. and if it is an investment for which returns will keep on coming in then no cost benefit analysis can be done for it.