ROI budgeting method of advertising

A budgeting method in which advertising and promotions are considered investments like plants and equipments. Thus, the budgetary appropriations (investments) lead to certain returns. Like other aspects of the firm’s efforts, advertising and promotion are expected to earn a certain return. While this method seems to be good theoretically, in practice it is rarely possible to measure the returns accrued by the advertising as there is immediate as well as delayed impact of advertising.