What is Advertising?
Companies use advertising to impact their target audience's behavior and opinion, through persuasion and promotion, in buying various products or services. The structure and use of advertising varies considerably from industry-to-industry. Many large organizations outsource their advertising operations to third-party ad agencies. Other companies may perform advertising activities in-house, either in-whole or partially. Activities carried out within a typical advertising function, or agency, include audience research, competitor research, ad design and production, content development, media buying and ad performance analysis and reporting. Major advertising mediums include digital or social media platforms, print publications (e.g., magazines, newspapers), television, radio, and outdoor ads (billboards, etc.).
Marketing Benchmarking ReportBenchmarking Report Bundle
Marketing Expense as a Percentage of Total RevenueBenchmarking Report
Marketing KPI EncyclopediaKPI Encyclopedia
Marketing Best Practices GuideBest Practices Guide
Marketing Organization Chart TemplateOrg Chart Template
Campaign Management: Cable ProvidersWorkflow Template
Marketing Expense as a Percentage of Total Revenue
The expense incurred by the Marketing Department (wages, benefits, overhead, campaign expenditures, etc.) divided by the total revenue earned by the company over the same period of time, as...
KPI Type : Cost
Formula : (Marketing Department Expense / Total Revenue Earned) * 100
KPI Benchmark Range : 0.8% - 12.3%
A typical advertising function, or ad agency, is composed over several common sub-functions, or teams, that work together to understand target audience demographics and interests, develop enticing ad content (print, digital, etc.), manage relationships with advertising partners and outlets, improve overall brand awareness and increase sales. Browse our Advertising organization chart page to learn about the roles and responsibilities of each major function. Then, download our org chart template (PDF, Visio) to further understand advertising organizational structure, and support improvement efforts within advertising operations.
Check out our advertising best practices page to view selected descriptions of work methods that have been proven to produce better results (as compared to other, similar methods). Want more? Download our Advertising best practices guide, which provides a healthy selection of valuable best practices that can be incorporated to improve advertising operations and overall effectiveness. There might not be only one "best" way to perform every task. However, there is always a "better" way.