Many firms advertise. what effect does advertising have on firm profits? one possible effect of advertising is to

The end result of any advertising campaign is to increase revenue and improve the profits of a company.

A good advertising campaign would mean a company will be able to make more money than it puts in. For example, spending $1 should be able to create an increase of more than $1 for the advertising campaign to work.

Advertising might fail, if a firm spends a lot of money but is not able to improve it's profits