What happens when Wall Street meets Madison Avenue? Despite billions spent annually on advertising, surprisingly little research has explored how these investments impact a company's stock price—until now.

Shubha Srinivasan, the Adele and Norman Barron Professor of Management and Professor of Marketing, pulls back the curtain on this critical relationship in our fascinating conversation about her groundbreaking research synthesizing findings from over 250 studies. She reveals three distinct pathways through which advertising influences firm valuation: the indirect route (via increased sales and profits), signaling value to investors, and building long-term brand assets.

The disconnect between marketing and finance departments has historically created blind spots, with marketers celebrating metrics like brand awareness while CFOs demand hard ROI numbers. Srinivasan's research bridges this gap, providing marketers with the ammunition they need when facing budget scrutiny. Perhaps most compelling is her finding that a 10% increase in customer retention can translate to a 7% boost in stock price—a connection that transforms how we should evaluate marketing effectiveness.

Not all industries experience equal benefit from advertising investments. Consumer-facing sectors like retail, CPG, and tech show stronger connections between advertising and stock performance, while B2B industries might benefit more from relationship-building than traditional advertising. Meanwhile, price promotions present an interesting paradox—consumers love them, but investors often view them as value-destroying.

The key takeaway? Marketing leaders must move beyond defending their budgets with short-term metrics and start connecting their efforts to financial outcomes investors care about: revenue growth, margin improvements, risk reduction, and predictable cash flows. By speaking the language of investors and measuring what endures rather than just what's immediate, CMOs can reposition marketing from a cost center to a strategic investment in the company's future.

Ready to transform how you view marketing's financial impact? Listen now and discover why the evidence is clear—advertising is far more than just a cost; it's a powerful driver of lasting company value that savvy investors are already noticing.

In this episode, JP Matychak and Mark Williams, Master Lecturer in Finance, discuss the complexities of tariffs, their implications for the US economy, and the recent changes in tariff policy announced by President Trump. They explore how tariffs function as a tax on imported goods, the burden they place on consumers, and the potential economic fallout, including inflation and recession. The conversation also delves into the long-term risks of relying on tariffs as a trade tool and suggests more constructive approaches to address trade imbalances.

Key Takeaways

• Tariffs are essentially a tax on imported goods.
• Consumers ultimately bear the cost of tariffs.
• Recent tariff changes have led to significant market declines.
• The administration's goal with tariffs is to protect local industries.
• High tariffs can lead to inflation and reduced consumer spending.
• Stagflation poses a significant risk to the economy.
• Tariffs can trigger retaliatory measures from trading partners.
• Long-term reliance on tariffs can harm global trade relationships.
• Constructive trade policies should be incremental and strategic.
• Monitoring financial markets is crucial for understanding economic trends.

Unlock the secrets of internet privacy as we journey through the intricate world of digital cookies and their profound impact on our online lives. Featuring insights from Garrett Johnson and Tesary Lin of Boston UniversityQuestrom School of Business, we explore the evolution of privacy regulations and their influence on major browsers like Chrome. Discover how first-party and third-party cookies have transformed digital marketing, and learn about Google's innovative Privacy Sandbox initiative, which seeks to balance user privacy with the needs of advertisers and publishers.

We also shine a light on the controversial "dark patterns" in user interface design that can manipulate cookie consent rates, challenging the effectiveness of privacy regulations like the GDPR. Delve into the complexities of data protection with a focus on the Global Privacy Control and the potential for a unified U.S. federal privacy law. As we navigate the emerging landscape, we address the responsibilities of AI platforms and social media in safeguarding user data and managing content. This episode promises to equip you with a deeper understanding of the ongoing challenges and future implications in the realm of internet privacy.