Reducing media investment...Indeed, what’s the cost?

For the first time, Kantar Worldpanel, in collaboration with Havas Media Network, has conveyed an in-depth analysis of 52 brands over 8 years to quantify and understand the impact of lower advertising investments on key performance KPIs.

Advertising memorization, consideration, investments and penetration... All the indicators are being affected...

The findings are crystal clear! Advertising memorization is being affected for all the brands studied. It takes only 6 weeks on average for a dropping media investment to have a negative impact.

Impact of a 10% reduction in media investment Kanter

Consideration quickly follows, with 87% of the tracked brands affected. The decline takes effect after 7 weeks, with an immediate impact in 45% of cases.

Sales are not saved either. Even if the impact is not immediate (16 weeks on average), it affects nearly 3 out of 4 brands, 21% of them immediately. A 10% drop in the gross media budget will reduce the sums spent by 1.3% on average.

As for penetration, it will post a decline in almost 70% of cases after 17 weeks. Most affected brands lose an average of 100,000 buyers per 10% reduction in investment.

"All brands that reduce their media investment are at risk! Almost 9 out of 10 are considered less, almost 3 out of 4 suffer an impact on their turnover and 2 out of 3 see their penetration drop. They are well and truly at risk."