Advertisements make an impact on the human mind. At the same time, continuous promotion of products affects brand loyalty. So it is important that advertisements are retained in the memory of the ta rget cus tomer s. Here, the concept of an advertisement multiplier , which mea sures the benefit tha t a company receives a fter a par ticula r advertisement expense comes into play. Since advertisement cost decays at a continuous rate, a company should determine the decaying rate of a target customer as well.

The concentration with which we watch a program is broken by a commercial break frequently. But these commercials, which are memorized by a viewer for a short duration or for a long period, has not been determined in a simple way as yet. So far, accountants have considered any large amount used for an advertisement as deferred revenue expenditure and have amortized it to three to five years. But the human mind does not memorize anything limited to a period of three to five years; it may extend from few hours to many years. Companies spend large amounts in their advertisement budget, but they do not know the longevity of this expense. Memorization Effectiveness of Advertisement (MEA) helps a company whether the advertisement strategy is a slow drip or a sudden burst. S Brierley, (1995:116) refers to the frequency of the release of the advertisement and not to its content. It also minimizes company’s advertisement budget with no loss of sales unit. The old concept says that increase in advertisement increases brand loyalty; and according to the new concept, continuous promotions hurt brand loyalty, leaving little room for a brand premium demand in a commodities market (Gubir Singh et al., 20004). The advertisement expenditure in the (Fast Moving Consumer Goods)FMCG sector is brought down because of price reduction. This paper examines the advertisement recall process of a consumer, memorization effectiveness of advertisement and the decaying rate of an advertisement. Advertisement Recall

The short copy and long copy (Guy Cook, 1996) communicates with a consumer in a different way. However, the measurement of advertisement recall has become a highly controversial topic, partly for its principles like, advertisements are not meant to be remembered, but to have a useful effect (Knetcht, 1990); and partly because the results are not thought to be particularly reliable.