Marketing Campaigns that include some revenue

Discussion in 'Technical Queries' started by shoresm, Jan 21, 2019.

  1. shoresm

    shoresm

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    As part of our brand awareness activities we will enter into "marketing campaigns" where we pay a guaranteed amount to an influencer and will co-brand one of our products, or we will sell our product for a tremendous discount. The intent is to break even or run the campaign at a slight loss, but to gain awareness (IG posting, FB posts, email addresses, etc). We will then market to those new followers.

    My question is....can I net the entire campaign and charge the net impact to the Marketing line. I am contemplating netting sales/cogs/promotional costs/influencer payments and charging the net to Marketing. Does this follow GAAP and if so, how should I position my "Accounting Policy" write up on this?

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    shoresm, Jan 21, 2019
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