Intangible Marketing Capital

28 Pages Posted: 15 Jun 2022

See all articles by Bart Bronnenberg

Bart Bronnenberg

Tilburg University; Centre for Economic Policy Research (CEPR)

Jean-Pierre Dubé

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); Marketing Science Institute (MSI)

Chad Syverson

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Date Written: June 13, 2022

Abstract

We present several empirical facts about trends in marketing investment in the US. We also present estimates of the private value of brands to firms and aggregate intangible brand capital stocks created by these investments. These investments include the creation and maintenance of a brand name and all its corresponding brand elements (e.g., awareness, reputation, image, etc.), along with the investments in the labor force used to manage and oversee the branding. We then discuss the private benefits to firms from their advertising and the established academic wisdom for the striking magnitude of marketing outlays. Finally, we explore the welfare implications of investments in brand capital.

JEL Classification: D21,D22,D24,D4,L1,L15,M3,M31,M37

Suggested Citation

Bronnenberg, Bart and Dube, Jean-Pierre H. and Syverson, Chad, Intangible Marketing Capital (June 13, 2022). University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2022-74, Available at SSRN: https://ssrn.com/abstract=4136683 or http://dx.doi.org/10.2139/ssrn.4136683

Bart Bronnenberg

Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Jean-Pierre H. Dube (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 South Woodlawn Avenue
Chicago, IL 60637
United States

HOME PAGE: http://gsb.uchicago.edu/fac/jean-pierre.dube

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Marketing Science Institute (MSI) ( email )

1000 Massachusetts Ave.
Cambridge, MA 02138-5396
United States

Chad Syverson

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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