Question

What are some key fixed, variable, or implicit costs in the US advertising marketing?

Answer 1

Marketing costs are always considered as fixed costs as every company allocates specific portion of its annual budget for marketing activities. Therefore, marketing expenses remain unaltered till next company budget even with increase in input costs. The companies in USA, also spend a fixed amount of their annual budget on marketing activities.

Advertising is a part of marketing and sales promotion that include television advertisements, newspaper ads and online email compaigns. The advertising costs is always variable cost as it depends on total output of a company, commissions, cost of seminar or conference venues and price of ads booking on newspaper and media channels. In USA, television has been the biggest medium of advertisements of company products and services for many years. The key variable costs of US marketing advertising are costs of television ads, public relations and online ads. The implicit costs indicates loss of income or revenue of a person or company for not doing a particular action. In US marketing advertising, implicit costs appear when a company in US selects an expensive seminar venue that raises its overall advertising costs.