Advertisers using the "industry average" approach base their advertising budgets on
A) what other agencies are spending
B) what consumers are spending
C) the prime-time cost of a 30-second commercial
D) what the cost is of market research
E) what competitors are spending

Question

Quizplus · Accepted Answer

Advertisers using the "industry average" approach base their advertising budgets on what competitors are spending. This approach assumes that competitors have similar marketing goals and customer segments, and that their spending levels are a reliable benchmark to determine what is necessary to remain competitive in the market.

Advertisers Using the "Industry Average" Approach Base Their Advertising Budgets