Research from the Ehrenberg-Bass Institute confirms that cutting advertising during a crisis severely harms brand performance.
Their study shows that brands that stop advertising not only lose short-term sales but also suffer long-term damage to brand growth.
This was demonstrated during the pandemic: Procter & Gamble maintained and even increased its ad spend, resulting in a 4% revenue growth in 2020 and strong market share gains.
In contrast, Coca-Cola paused most of its global advertising, leading to an 11% drop in net revenues, while competitors like PepsiCo, which kept advertising, grew by 5%.
The research highlights a key marketing principle: when competitors cut back, maintaining share of voice becomes cheaper and more powerful.
Ehrenberg-Bass data stresses that consistent advertising is crucial for mental availability, brand salience, and long-term profitability even when immediate returns seem uncertain.
Credits to the Ehrenberg-Bass Institute!
