Brand Strategy

New reasearch out by Ehrenberg-Bass:

“Key findings

When brands stop advertising for a year or more, we find sales often decline year-on-year following the stop (on average, sales fell 16% after one year, and 25% after two years).

The rate of decline is fastest for brands that are already declining before the advertising stop.

Brand size also matters. Small brands typically suffer greater declines than bigger brands.

Bigger growing brands tend to continue to grow after advertising stops for one to two years, whereas the sales trend quickly reverses for small growing brands.”

What happens when brands stop advertising? | Ehrenberg-Bass Institute for Marketing Science The sales of a brand are like the height at which an airplane flies. Advertising spend is like its engines: while the engines are running, everything is fine, but, when the engines stop, the descent eventually starts.

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