What happens if Brands Stop Advertising?
Joydeep Sanyal
Marketing Leader Driving Growth & Innovation | Head of Marketing at Innoterra | Former AVP Marketing at Aditya Birla Sun Life AMC | Former DVP Marketing at Kotak Life | Former Sr. Manager Marketing at ICICI Pru | India
#Advertising is like what an engine is for an airplane. So, the consequence of advertising dark periods is pretty much the same as to what happens to an airplane when it stops running mid-air. For some moments it glides but eventually it falls out of air.
Here are some key effects of not advertising:
1. Despite the acknowledged contribution of advertising to business success, there will always be times when companies respond to financial pressures by going dark. Evidence suggests that going dark has little impact on #brand or business metrics in the short run.
2. However, longer periods off air will likely damage brand health by weakening the bond with consumers. Longer periods off air will also likely damage a brand’s market share/sales.
3. And once decline sets in, it may be hard to reverse. Supporting a brand in other ways may provide some short run protection but the best way to ensure long term brand growth is to maintain ad spend. The evidence suggests that it is better to maintain than must regain key metrics and that requires treating advertising as an investment rather than as a cost.
4. This is especially true in time of recession. Indeed, investing in ad spend in time of recession can bring significant long run advantage.