Stop advertising: this is what it does to your sales
What actually happens to my brand and sales figures if I don’t use media for a while? That is a question we get quite often. A good answer to that question does require some research. It depends on several factors, such as your current fame, how many other brands you compete with in the industry and what they spend on media and of course how long you don’t use media. A scientific analysis from the Ehrenberg-Bass Institute now answers the question of what absence from the media does to your sales figures.
It is not an unknown situation for many brands: cutbacks have to be made, or the focus of the company is on other matters. Often the advertising spend is the first to suffer. Of course it is not immediately disastrous for most brands to temporarily stop advertising, but in the longer term there are consequences.
Smaller brands, bigger drop
The renowned marketing research institute Ehrenberg-Bass Institute in Australia conducted an interesting analysis of advertising spend and sales figures. They analyzed a dataset of advertising spend from 1996 to 2015 and compared it with the sales figures of Australian brands. They specifically looked at brands that had not used media for a year or more. In the case of this analysis, the brands were mainly alcoholic beverages (particularly beer brands) and high-reach mass media campaigns. The researchers looked at how much the brands sold per year and to what extent the brand was growing, stable or shrinking from the base year. The sales figures are then indexed from the base year.
Read the full article in Zigt.
