A silent impact: What happens when companies decide to stop investing in advertising?

It is estimated that the brands that uninform in advertising lose a 20% penetration in their respective markets. Innovation in marketing strategies can be the key to face economic challenges without sacrificing visibility and impact on the market.

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It is estimated that the brands that uninform in advertising lose a 20% penetration in their respective markets. Innovation in marketing strategies can be the key to face economic challenges without sacrificing visibility and market impact.

The risks of cutting

In the dynamic business world, advertising plays a crucial role in the construction of brands, market expansion and connection with consumers. However, sometimes, some companies choose to cut their advertising budgets in an attempt to reduce costs. This movement, although it may seem an immediate solution to balance finance, involves significant impacts that transcend short -term savings.

According to data recently published by the Kantar consultancy, it is estimated That the brands that uninform in advertising lose a 20% penetration in their respective markets.

The abandonment of advertising investment translates rapidly into A decrease in brand visibility in the market. In an environment saturated with messages and products, companies that stop promoting are at risk of being forgotten by consumers. Fierce competition requires constant presence to stay in the mind of the target audience.

Advertising not only informs about products or services, but also builds and strengthens the identity of the brand. By reducing investment in advertising, companies risk losing recognition they have built with care over time. The lack of exposure can dilute the perception of the brand and weaken its position in the consumer's mind.

The relationship between advertising investment and sales is undeniable. Without a constant presence in the right channels, companies may experience a decrease in the generation of leads and, ultimately, in sales. Effective advertising promotes consumer conversion and commitment, aspects that should not be overlooked in a sustainable business strategy.

Advertising attracts new customers, and also plays a crucial role in retention. Continuous campaigns allow companies to stay in the minds of their existing customers, promoting loyalty and encouraging business repetition. The lack of advertising efforts can lead to the loss of customers, since the competence takes advantage of the opportunity to occupy the vacant space.

What to invest, that's the question

Although the reduction of expenses is a measure that may be necessary at certain times, the complete elimination of advertising investment may have long -term consequences that exceed immediate benefits. Companies can begin to rethink on what and how they are investing, and consider more efficient and focused advertising strategies instead of completely abandoning this vital tool for business growth and sustainability.

In the world of digital communication, there are multiple opportunities that offer low -cost strategies with high return. Websites, email marketing and social networks are valuable tools that allow companies to maintain an active and effective presence in the market without compromising their financial efficiency.

Given a context of increasingly fragmented audiences, companies have the possibility to analyze more consumer purchase habits to offer more personalized advertising. «The relevant thing is at this time is to take advantage of the mix of channels. Combine them optimally, according to the information provided by consumption panels, and build increasingly profitable and connected campaigns with the objective of conversion to sales, ”said Mayte González and Fernando Moreno, responsible for the average solution in Kantar Worldpanel.

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