What expense category is online advertising?
There is no definitive answer to this question, as the correct expense category for online advertising can vary depending on the business and the type of advertising being used. However, some common expense categories for online advertising include:
Marketing
Many businesses will categorize online advertising as a marketing expense. This is because advertising is often used to promote and sell products or services, and is therefore seen as a marketing tool. Marketing expenses are typically used to track the costs of all marketing activities, including advertising, public relations, and market research.
Sales
Another common expense category for online advertising is sales. This is because advertising can be used to generate leads and sales for a business. Sales expenses are typically used to track the costs of all activities related to generating revenue, including advertising, sales commissions, and customer service.
General and Administrative
Some businesses may categorize online advertising as a general and administrative (G&A) expense. This is because advertising can be used for general branding and awareness, rather than specifically promoting products or services. G&A expenses are typically used to track the costs of overhead and general business operations, including advertising, office supplies, and legal fees.
Conclusion
There is no right or wrong answer when it comes to categorizing online advertising expenses. The most important thing is to choose an expense category that makes sense for your business and that will help you track and manage your advertising budget effectively.