> Now, whether SG&A is the right number to use as a stand-in for advertising, I don't know.
It is not. SG&E [1] includes a lot of things, including all labor costs (all the salaries for all the employees) and all rent.
As an example, Novo Nordisk, the maker of Ozempic, has annual operating expenses of about $20 billion and in 2023 launched an advertising campaign for Ozempic/Wegovy of a bit less than $0.5 billion/year.
> SG&E [1] includes a lot of things, including all labor costs (all the salaries for all the employees)
Lowe addresses that: Interestingly, R&D expenses technically go there [SG&A] as well, but companies almost always break that out as a separate subcategory, with the rest as "Other SG&A"
It is not. SG&E [1] includes a lot of things, including all labor costs (all the salaries for all the employees) and all rent.
As an example, Novo Nordisk, the maker of Ozempic, has annual operating expenses of about $20 billion and in 2023 launched an advertising campaign for Ozempic/Wegovy of a bit less than $0.5 billion/year.
[1]https://en.m.wikipedia.org/wiki/SG%26A
[2]https://www.macrotrends.net/stocks/charts/NVO/novo-nordisk/o....
[3]https://www.opensecrets.org/news/2024/07/ozempic-producer-no....