It's a common belief that half of the money spent on advertising and sales promotion is wasted.

Question

Quizplus · Accepted Answer

This statement is based on the Pareto principle, also known as the 80/20 rule, which suggests that roughly 80% of the effects come from 20% of the causes. In the context of advertising, this means that only about 20% of the spending is actually effective in driving sales, while about 80% is not. Therefore, it can be argued that approximately half of the money spent on advertising and sales promotion is wasted.

It's a Common Belief That Half of the Money Spent