What happens if brands cut their advertising spend due to COVID-19?

Kantar, the research firm, has conducted various studies that help map out the results from increasing, maintaining or decreasing adspend at a time of crisis, such as the COVID-19 pandemic.

Why it matters

Capital expenditure faces pressure as the impact of COVID-19 intensifies, meaning that adspend will inevitably receive heightened scrutiny. Understanding the impacts of cutting spend can help marketers protect budgets and plan for the future.

“If you go totally dark for this particular brand, obviously the share of voice goes to zero, and the impact on sales is actually losing 13% of sales in the long run,” Ostler said. “That is market share that is very, very hard to recover.”

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