Consumer packaged goods (CPG) brands which stop mass-reach advertising typically witness a double-digital contraction in value market share after just one year of “going dark”.

The finding was revealed at a conference held by the Advertising Research Foundation in New York.

Why it matters

Brands often slash their advertising spend to zero in tough economic times, or simply because they want to invest resources in other activities or modes of consumer engagement. But this strategy usually puts long-term growth at jeopardy and should be avoided whenever possible.

Takeaways

Looking at 365 brands in 22 categories that stopped advertising in the...