Can you Afford to Stop Advertising?

The key to getting people to make a purchase from your business is to get them to know your business. This is why the not so secret to running a successful business is advertising because it increases client loyalty, brings in leads and revenue, and helps to make your brand more visible.

Without advertising, businesses would struggle to reach their target market, raise awareness, and increase sales. Stopping advertising may have a negative impact on any organization by lowering revenues and decreasing client loyalty.

However, there are still those who opt to cut down on their advertising or stop it altogether to save on cost and increase net income. Unfortunately, the repercussions of this far outweighs the temporary benefits.

What happens when you stop advertising

Now regardless of why brands stop advertising, it is important that we understand what happens when they do. Specifically, how will sales be affected? And how big might the consequences be? To answer these questions, we credit Dr Nicole Hartnett and her colleagues at the Ehrenberg-Bass Institute that have proven the effects in their published paper, “What happens to sales when brands stop advertising for long periods?”

In the reported study, it talks about the impact of reducing long- or short-term targeted advertising. Whatever you choose there must always be a balance, but since brand building improves the effectiveness of activation, reducing long-term spending will still have an impact even if you are engaged in short-term activation.

Take for example, campaigns with a broad audience targets light purchasers, who are essential to growth. While price-related initiatives may result in a sales blip, they just shuffle the repertory rather than developing the brand.

There’s never a good reason to stop advertising

Marketers will face numerous difficulties and challenges to keep their campaigns and strategies effective and compelling. However, there is never a good justification to decide to stop advertising because this is equivalent to ceasing to attract new customers. And when you don’t attract new customers you won’t generate new revenue to sustain your business.

It also has to do with your relationships with your consumers, and it can be very difficult to reestablish strong bonds after taking a break from advertising. Rebuilding is always challenging in stop/start situations.

Using data for decision making

The study promotes much deeper consideration of long-term lessons learned rather than just relying on specific campaign reviews as this provides numerous instances of missed learning opportunities. It is said that marketers are unwilling to spend in research into how advertising impacts brand performance because they believe that because the money has already been invested, nothing can be changed. However, it is important to draw lessons from your past accomplishments and disappointments. So that you don’t have to start from scratch every time, and develop a vast body of knowledge to adopt a more meta perspective on what works and what doesn’t.


Schedule a free call and assessment today.