In the current era of business, awareness of product with fascinating advertisement plays a significant role in increasing revenue from operation. The quality of the products is judged by their packaging, celebrities who endorse the specific goods and advertisement expenditure incurred by the organisation. Hence, advertisement expenditures are finding prominent place in the cost sheet of the company to boost the dependent variable ‘Revenue and Net Profit’.

This empirical study is carried out to examine the correlation of advertisement expenditure with revenues and net profit. The companies from Fast-Moving-Consumer-Goods (FMCG) sector have been considered as samples which are listed on a National Stock Exchange (NSE). The data required for this research are compiled from Bombay Stock Exchange (BSE) website (www.bseindia.com), and annual reports of the companies for the period covered under this research i.e. last 15 years (FY 2006-07 to FY 2020-21). Correlation and regression statistics as assessing tools have been applied to evaluate the relationship among these three variables and found that there is a positive and linear correlation among them.