Hu, BaidingSanyal, A2016-06-092016-04-292016-04-292016-04-26Hu, B. and Sanyal, A. (2016) Advertisement Spending and Income: An Aggregative Analysis. Theoretical Economics Letters, 6, 356-366. doi: 10.4236/tel.2016.62040.2162-2078https://hdl.handle.net/10182/7001Existing studies tend to investigate cross-sectional relations between GDP and advertisement at the firm or industry level. The present study focuses on the long-run relation between GDP and aggregate advertisement spending using United States data for the period 1900-2007. Granger causality tests indicate the temporal precedence of GDP. A cointegration analysis shows that, as GDP increases, it causes advertisement spending to increase at a rate faster than its own growth. Faster growth relative to GDP is accompanied with a negative autonomous trend of advertisement spending. This trend appears consistent with the continuous technical progress in advertisement.pp.356-366enCopyright © 2016 by authors and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution International License (CC BY).advertisement spendingGDPGranger causalitycointegrationJournal Article10.4236/tel.2016.62040ANZSRC::1505 MarketingANZSRC::150502 Marketing Communications2162-2086https://creativecommons.org/licenses/by/4.0/Attribution