carry-over effects

Definition:
Literally, those effects which are a carry-over from a prior period of analysis into a current or future period of analysis and therefore not directly attributable to present or future marketing actions. This effect is particularly noticeable in the case of advertising where there is often a significant lag between the publication of an advertisement and consumer reaction to it, with the result that expenditure may be incurred within one accounting period with no apparent return on that expenditure. However, the effects of this advertising will have a carry-over effect into succeeding accounting periods and forecasters and planners should seek to estimate these and incorporate them into their projections. Recognition of carry-over effects has led many marketers to argue that marketing expenditure should be treated as a capital rather than an expense item as the benefits are only recouped over time and usually beyond the boundaries of conventional accounting periods.

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