Raising prices? How advertising strengthens your brand’s pricing power

Proposes that brand advertising can have three types of effects, consideration, preference and price elasticity.

Navigating inflation and the threat of recession

This article is part of a series of articles from the WARC Guide to navigating inflation and the threat of recession. Read more

Why it matters

Given the well-known doubts on the power of advertising to incrementally increase sales, the role of advertising to increase the brand’s price power becomes even more important when arguing for its budget.

Takeaways

Based on 2003-2010 Kantar Worldpanel data for 350 brands in 39 categories of fast-moving consumer goods in France, the authors quantified the power of brand advertising to reduce brand price sensitivity....

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