The truth is out - Stopping advertising reduces sales by an average of 16% in a year

A two decade study found that sales fell by an average of 16% in the first year of not advertising, by 25% after 2 years, and by an alarming 36% after 3 years.

Crucially, the study also found that resuming advertising even after one year did not stop this downward sales trend - in fact, most brand’s sales continued to fall further even after resuming advertising and marketing activity.

The report states that "While it may be tempting to withdraw the advertising budget for a boost in profits, the evidence suggests that doing so risks putting the brand on a downward sales trajectory”.

This belies the common business decision to cut back, or to cut completely, advertising and marketing spend when times are tough, in favour of other areas of business spend that are perceived to be more important.

The study indicates that in reality the reverse is true. Advertising and marketing activity is the last thing companies should cut and is in fact the most important spend a company can make to maintain their sales momentum.

To find out more about how MC+Co can help you can get more impact from your advertising and marketing spend call +44 (0) 1277 366898. Alternatively please fill out the form below and we’ll get back to you asap.