Cutting TV advertising will harm your brand

11 November 2008

Brands that are considering riding out the credit crunch by cutting their TV ad budget may be doing long term harm to the exposure of their brand, claims PricewaterhouseCoopers (PwC).

According to research published this week by PwC, brands that make heavy cuts in their ads are losing the most brand value, especially those cutting from TV. The conclusions of PwC are reinforced by research done by data modelling consultancy Data2Decisions (D2D), who found that brands that stop advertising on TV for only one year will need five years to undo the damage the lack of exposure causes.

Both the PwC and D2D study found that TV was the leading media contributor to brand value and also the leading influence on perceptions of value for high consideration items. The quality, reputation and 'buzz' of a brand were more likely to be reinforced in the mind of consumers with TV ads.

“The key lessons of our study are twofold. Firstly, competition does not disappear in a downturn so reducing your relative TV investment has a clear downside. Secondly, TV continues to drive significant shifts in consumer preferences and willingness to pay for a brand,” said Thomas Hoehn, partner, PricewaterhouseCoopers.

PwC’s research examined several different markets including airlines, mobile phone operators, electrical appliances and motor insurance. All markets appeared to be effected in someway by the economic downturn; however, the least affected were brand leaders and clear 'value' brands.

Martina Mackintosh, London