When brands go dark: Examining sales trends when brands stop broad-reach advertising for long periods

Nicole Hartnett, Adam Gelzinis, Virginia Beal, Rachel Kennedy, and Byron Sharp

Because of various financial reasons, or a change in strategic focus, sometimes brands stop broad-reach media advertising for a year or longer.
Hartnett et al

MANAGEMENT SLANT

  • When brands stop broad-reach advertising for a year or longer, most likely, sales will decline and continue to decline year over year without advertising.
  • The average observed change in brand sales was –16 percent after one year without advertising, dropping to –25 percent after two years, and reaching –36 percent after three years.
  • Brand size and sales trajectory before advertising cessation affected the rate of sales decline; sales declined more rapidly for small brands and already declining brands.
  • Larger, growing brands often were observed to continue to grow after...

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