What happens if I stop advertising?
Despite the acknowledged contribution of advertising to business success, there are still times when companies choose to make cuts to their advertising budget, either because of internal or external financial pressures. At such times, the advertising budget is susceptible because it is not committed until it is spent, it can be paused at short notice then restarted easily, and it can be cut without any immediate impact on business productivity (unlike, say, cuts in wages or production expenses). But actions always have consequences. As Simon Broadbent wrote, “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”.
This document answers the following questions:
- What are the consequences, in both the short and long run, of a brand
- What is the trade off between maintaining versus regaining brand equity/
- What happens if I cut my budget in a recession versus keep advertising
during a recession?
See the study here