Worthy of its own post is this quote from the Morgan & Rego brand portfolio strategy paper I talked about yesterday:
"However, our results also indicate that efficiency-enhancing efforts to reduce marketing expenditures can be counterproductive. We find that relative advertising spending is positively related to firms' cash flow levels and negatively associated with cash flow variability .... This suggests that in contrast to current accounting conventions, marketing spending appears to be an investment rather than an expense."Now that's something that marketers having been saying forever but it's great to see it confirmed in a comprehensive empirical study (a 10-year study of 72 Fortune 500 companies).
Source: Brand Portfolio Strategy and Firm Performance, Journal of Marketing Vol. 73 (January 2009) by Neil A. Morgan, Associate Professor of Marketing and Nestlé-Hustad Professor of Marketing, Kelley School of Business, Indiana University and Lopo L. Rego, Assistant Professor of Marketing, Tippie College of Business, University of Iowa.