What About the Relationships Among Sales, Advertising, and Earnings?

The article discusses marketing spending for the 93 of the 100 largest U.S. advertisers. The author suggests the correlation between net earnings for 1961 and 1962 implies that there was nearly perfect prediction of profitability for the succeeding year, the correlation between net earnings for 1962 with the net sales of 1961 and 1962 indicates a very accurate prediction of profitability, and the correlation between 1962 net earnings and 1961 total advertising suggests a modest relationship between earnings and advertising. Findings from 1962 also indicated that investments in print advertising were more likely than television advertising to be associated with larger profits.