Can advertising be treated as an asset under brand development?

This question was posed on the LinkedIn “Answers” section this morning.

The question: “Are there cases or examples of newspaper advertising being part of the brand development, therefore can be treated as an asset rather than an expense”?

Here was my answer: “Speaking from the standpoint of a branding consultant, not an accountant, my opinion is that advertising is and will continue to be an expense not an asset. So will sales calls, PR, trade shows and other sales and advertising activities.

“The brand is separate from branding. The brand is the asset not the act of brand development.”

Taking the argument for classifying brand development as an asset to the extreme, if a sales person takes a client to lunch, the brand might be enhanced for that single customer, but I doubt you could classify that luncheon tab to be anything but an expense.

Does someone have another idea? Or a different perspective?

If so, please comment below and go to LinkedIn – Answers to post an opinion.

Martin Jelsema

Leave a Reply

Your email address will not be published. Required fields are marked *