Impact of Advertisement on Bank’s Profitability of Pakistan

ABSTRACT

This study aims to analyse the relation between Advertisement Expenses and Bank’s Profitability by running certain type of tests which is related to statistical findings. Regression analysis, Correlation analysis, and descriptive statistical tests were taken to sort out the effect of Advertisement over Bank’s Profitability of Pakistan. Banking industry is one of the major industries of Pakistan’s Economy. For the growth of the economy, every sector must perform at their best for that purpose Advertisement play a major role in increasing customer knowledge and change the perception of customer towards products. To attract the customers Banks, spend thousands of Rupees on advertisement so they buy the products and, in the result, their revenue increases. This study mainly focusses on impact of advertisement on Bank’s Profitability that how much banks spend on Advertisement and how much they gain from that investment. According to the results Advertising Expenses have a positive impact on ROA, whereas it shows a negative impact on ROE

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