How Brands Shrink

It’s an instant classic, a must-read for all marketers and of course, it’s not actually a book. But this recent research publication from the Ehrenberg-Bass Institute deserves your attention. The report has found that when brands stop advertising they shrink. On average they’ll see a sales decline of 16% after one year and 25% after two years. If your brand is already in decline, your rate of decline will be the fastest. Smaller brands feel the pinch even more than bigger brands with a greater decline over a year.

The report warns marketers to avoid the temptation of advertising cuts for short term profit boosts as, ”the evidence suggests that doing so risks putting the brand on a downward sales trajectory. Without refreshment, mental availability erodes.” So whether you’re looking to grow your brand or just maintain its market share, remember that it requires the appropriate share of voice.