Brand owners face a constant challenge in that they have to justify commitment to supporting brands with media investment and provide practical learnings with research and analysis.

A recent study linking the success of leading UK brands with their media support, shows that these brands have survived during periods of recession and increased competition. They have survived because they have been advertised.

The key challenge for brand owners is to maximise the efficiencies of the media support. ‘Trying Times’ examines the key learnings from research carried out by Professor Len Lodish of Information Resources, Inc. in the US and is supplemented by modelling work by the Analytical Consulting team in the UK.

Executive summary:

Surviving the challenges
		The increase in own label sales and, more importantly, the development of premium own label has applied significant pressure on premium manufacturer brands
		The performance of successful brands would appear to be linked, in part, to their ongoing media investments

The long-term benefits of advertising
		Long-term advertising effects were found to be broadly proportional to the short-term effects. As a rule of thumb, short term returns from media investment typically triple in size over the longer term
		For every pound spent on TV advertising, just 52 pence was delivered back in short term incremental sales

In-store promotions and TV advertising
		Advertising improves consumer loyalty and brand equity
		Trade promotions suppress media efficiency in generating incremental sales in the short-term

Co-ordinating promotions and advertising
		Many consumers have become ‘conditioned’ to buy products on promotion, especially in categories where high levels of support are common. Unless promotion and advertising occur simultaneously, advertising spend will achieve a lower return on investment

Getting the balance right
		Both advertising and promoting have benefits but are fighting against each other. The choice appears to be between long-term brand equity and short-term promotional return but a combination of both will achieve the best results

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