The true cost of cutting adspend

Stephen Buck
Taylor Nelson Sofres plc (TNS)


1. The Link Between Adspend and Subsequent Brand Success, Short and Long Term

  1. Taylor Nelson Sofres provided comparable purchasing data on 26 leading packaged grocery markets beginning in 1975, and continuing to the present. By linking these to adspend, we could determine whether there was a link between advertising expenditure and subsequent success of premium brands. (Section 2)

  2. In spite of the success of leading supermarket chains and their privatelabel products, most top premium brands maintained their position over the period 1975 to 2001, and many even increased their market share. The smallest brands bore the brunt of the impact of private-label products. (Sections 2 and 4)

  3. The study found that the brands with the best results over any time period (the Winners) tended to be those that had been advertising more heavily at the beginning of the period. These results update and confirm those of an earlier study. (Sections 2 and 4)