Advertising and promotional effects on consumer service firm sales: Media ad spend and quality matter for driving restaurant sales

This study focuses on the effects of different marketing-communications tools on company performance, namely how advertising-execution quality, media spending, and sales promotions differentially influence changes in sales revenue. The analysis employs five years of aggregated monthly data on nine leading brands in a consumer-services sector, quick-serve restaurants, an often-overlooked area with high marketing-communications expenditures. The findings illustrate that advertising spending and then execution quality mattered most for changes in sales revenue. Internet advertising had no effect for most companies, and sales promotions either were not significant or were related negatively to changes in sales.