The phrase "advertising allowance" is correct and usable in written English.
It can be used in the context of marketing or retail to refer to funds provided by a manufacturer or supplier to a retailer to promote their products.
Example: "The company offered an advertising allowance to help retailers increase visibility for their new product line."
Alternatives: "promotional budget" or "marketing fund".
Berger (1972) was the first to consider static model on cooperative advertising as discount given by the manufacturer to the retailer as an advertising allowance.
The official reason was the overspent advertising allowance, but the de facto firing was a culmination of two years of ruffled feathers--the logo flap, the political convention fiasco, the outraged corporate lobbyists.
They make every expenditure cost efficient by negotiating for extended payment terms, relative to calendar days when payment is due; or by getting a cash discount for paying within 10 or 15 days; or by getting some other compensation from the supplier, such as free delivery or an advertising allowance, and so forth.
Amazon was able to drive a much better deal, receiving a price of about $14.13 a share and paying for much of that stock, not in cash but in advertising allowances and an agreement in which it would not compete in certain areas with Ashford.
Still, 5% to 10% of sales are routinely plowed back into advertising allowances, display racks and new store discounts.
The advertising allowances can amount to $200 to $600 a vehicle and sometimes more, according to industry estimates.
American Honda Motor Co. has told its dealers that it won't give them advertising allowances if they offer vehicles below invoice on TrueCar, the fast-growing online auto sales service.
For example, a manufacturer could provide slotting or advertising allowances on their lower calorie or healthier snacks, which theoretically would help to increase both their supply and demand.
With performance allowances, manufacturers pay downstream distributors and/or retailers for a certain performance, such as slotting allowances to acquire prime shelf space or advertising allowances paid from the marketer to the retailer for advertising a certain product.
Their selection was based on several factors, such as incentives, advertising allowances, company flexibility, and their acceptance of all major credit cards.
"The industry spent $5.7 billion on advertising and allowances in 2011, but we didn't see a commensurate increase in [market] churn," said Jeremy Bowler, senior director of the insurance practice for J.D. Power & Associates.
