When Brands Go Dark: Examining Sales Trends when Brands Stop Broad-Reach Advertising for Long Periods

Published on Jun 23, 2021in Journal of Advertising Research3.154
· DOI :10.2501/JAR-2021-009
Nicole Hartnett5
Estimated H-index: 5
(UniSA: University of South Australia),
Adam Gelzinis1
Estimated H-index: 1
+ 2 AuthorsByron Sharp27
Estimated H-index: 27
(UniSA: University of South Australia)
Source
Abstract
Because of various financial reasons, or a change in strategic focus, sometimes brands stop broad-reach media advertising for a year or longer. These long dark periods have not been subject to much study, so little is known about the likely consequences. This exploratory study addresses this omission by documenting the sales performance of 41 beer, cider, and spirit brands that advertised intermittently over almost two decades. Changes in aggregate brand sales are reported for the years when brands stopped advertising relative to the last advertised year. On average, brand sales declined immediately in the first year and every subsequent year of advertising cessation. Decline generally was faster for smaller brands and for brands that already were declining in sales before advertising cessation.
đź“– Papers frequently viewed together
2009
References35
Newest
#1Nicholas De CanhaH-Index: 1
#2Michael Thomas Ewing (Deakin University)H-Index: 53
Last. Ali Tamaddoni (Deakin University)H-Index: 4
view all 3 authors...
ABSTRACT The advertising–sales relationship remains paramount. This study—believed to be the largest that focuses on automotive sales and advertising—investigates ceilings and thresholds by optimizing budget allocations among media. The study considered 12 vehicle brands in South Africa, spanning 8 years of sales, reflecting sales and media expenditure. It also considers the effect of competitors9 advertising expenditure and familiarity on the ceilings and thresholds of each medium, as well as t...
Source
#1Maarten Gijsenberg (UG: University of Groningen)H-Index: 9
#2Vincent R. Nijs (UCSD: University of California, San Diego)H-Index: 10
Abstract In most industries, brand managers do not advertise continuously. Instead, advertising is switched on and off systematically, a phenomenon often referred to as pulsing. Moreover, spending levels vary considerably across periods when brands do advertise. Surprisingly, this variety in advertising spending patterns as observed in practice, as well as competitor impact on these patterns and their sales outcomes, have received relatively little empirical attention. In this paper we focus on ...
Source
#1Marnik G. Dekimpe (Katholieke Universiteit Leuven)H-Index: 51
#2Barbara Deleersnyder (Tilburg University)H-Index: 12
Business cycles (BCs) may affect entire markets, and significantly alter many firms’ marketing activities and performance. Even though managers cannot prevent BCs from occurring, marketing research over the last 15 years has provided growing evidence that their impact on consumers, and hence on firm and brand performance, depends to a large extent on how firms adjust their marketing mix in response to these macro-economic swings. In this study, we review the growing marketing literature on how t...
Source
#1Christine Köhler (Kühne Logistics University)H-Index: 1
#2Murali K. Mantrala (MU: University of Missouri)H-Index: 26
Last. Vamsi K. Kanuri (UM: University of Miami)H-Index: 7
view all 4 authors...
AbstractTo optimally set marketing communication (“marcom”) budgets, reliable estimates of short-term elasticities and carryover effects are required. Empirical generalizations from meta-analyses of prior field studies can help guide these decisions. However, the last such meta-analysis of marcom carryover effects was performed on Koyck model–based estimates collected before 1984 and was confined to mass media advertising. The authors update and extend extant empirical generalizations via two me...
Source
(ProQuest: ... denotes formulae omitted.)The extant literature is replete with studies of the effectiveness of generic advertising and promotion programs conducted by the already large and growing number of commodity "check-off " programs in the United States (e.g., Forker and Ward 1993, Williams, Shumway, and Love 2002, Kaiser et al. 2005, Kaiser 2006, Williams and Capps 2006, 2011, Williams, Capps, and Dang 2010, Capps, Williams, and Malaga 2013, Capps et al. 2013). Check-off programs are prim...
Source
#1Nick Danenberg (UniSA: University of South Australia)H-Index: 2
#2Rachel Kennedy (UniSA: University of South Australia)H-Index: 14
Last. Byron Sharp (UniSA: University of South Australia)H-Index: 27
view all 4 authors...
Deciding on and justifying the size of advertising budgets is a common challenge that marketers face. We reinvestigate previously noted relationships between advertising spend and brand size for 11 countries, in two categories, for multiple media. We also investigate the longitudinal market share impact over five years of extra share-of-voice deviations from equilibrium share-of-voice calculated from share-of-voice equal to share-of-market (SoV = SoM) and Jones's advertising intensiveness curve ...
Source
#1Douglas C. West ('KCL': King's College London)H-Index: 24
#2John B. Ford (ODU: Old Dominion University)H-Index: 33
Last. Paul Farris (UVA: University of Virginia)H-Index: 26
view all 3 authors...
This study provides a survey of the methods used by U.S. advertisers to set advertising and promotions budgets and the effects of culture, risk, and organizational experience on these choices. Findings suggest that heuristics provide checks on analytically based budget methods and may also help managers deal with risks. Understanding the role played by heuristics in budgeting provides the first step toward process improvements in advertising and promotions budgeting.
Source
#1Kenneth C. Wilbur (UCSD: University of California, San Diego)H-Index: 16
#2Paul Farris (UVA: University of Virginia)H-Index: 26
Abstract This paper presents findings from a census of more than 79,000 stock-keeping units (SKUs) in 37 consumer packaged goods categories totaling $55 billion in annual revenue. It shows that, in 86 percent of product categories, the relationship between market share and retail distribution is increasing and convex at the SKU level. The degree of convexity is greater in categories with higher revenues and more concentration in market shares. The relationship is also typically convex within lea...
Source
#1Jenni Romaniuk (UniSA: University of South Australia)H-Index: 27
#2Svetlana Bogomolova (UniSA: University of South Australia)H-Index: 17
Last. Francesca Dall'Olmo Riley (KUL: Kingston University)H-Index: 21
view all 3 authors...
In this paper the authors provide evidence of the breadth and longevity of Andrew Ehrenberg's work—a testimony to the quality of his research approach. To demonstrate this vitality, the authors drew on 45 new data sets to test findings about the relative brand image response patterns from customer usage groups (Bird, Channon, and Ehrenberg, 1970). The data cover different categories (among them, services, durables, and retailers), countries (including emerging markets), and newer data collection...
Source
#1Ye Hu (UH: University of Houston)H-Index: 11
#2Leonard M. Lodish (UPenn: University of Pennsylvania)H-Index: 25
Last. Babak Hayati (UH: University of Houston)H-Index: 5
view all 4 authors...
ABSTRACT An analysis is performed on the results of 50 recent real-world TV advertising tests conducted by Information Resources, Inc. to update the findings of Lodish et al. [ Journal of Marketing Research 32, 2 (1995): 125–39] and Hu, Lodish, and Krieger (Hu et al.) [ Journal of Advertising Research 47, 3 (2007): 341–53]. Overall, the improvement of TV advertising sales effectiveness from media weight increase is significant for established products, consistent with Hu et al.9s finding based o...
Source
Cited By0
Newest
#1Carl Driesener (UniSA: University of South Australia)H-Index: 11
#2Cam Rungie (UniSA: University of South Australia)H-Index: 16
Last. Malcolm Wright (Massey University)H-Index: 24
view all 3 authors...
Source
This website uses cookies.
We use cookies to improve your online experience. By continuing to use our website we assume you agree to the placement of these cookies.
To learn more, you can find in our Privacy Policy.