Abstract
The purpose of this study is to investigate horthe advertising effectiveness of private banks of Pakistan by examining the effects of
advertising expenses on interest income, operating income and return on assets. In this respect, Koyck distributed lag model is
employed on the annual data of 19 private banks of Pakistan over the time period 2007 to 2018. Results indicated significant positive
effect of advertising expenses on interest income and significant negative effects of advertising expenses on operating income and
return on assets respectively. Overall results point towards the detrimental effects of advertising expenses on financial performance,
which unveils the advertising ineffectiveness of private banks of Pakistan. This study is exclusive as it questioned the advertising
effectiveness of banks in the context of Pakistan. This study focused on only private banks, so this facet can be investigated for other
types of financial and non-financial institutions in future.
Mubashar Tanveer, Mohsin Altaf, Faisal Mustafa, Saman Attiq. (2020) Evaluation of advertising effectiveness and advertising expenditures in banking: A time series analysis, Paradigms , Vol 14, Issue 1.
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