Nielsen – Bringing Back Advertising by Focusing on Brand Awareness

A recent analysis by Nielsen reported in Inside Radio raises an interesting point regarding advertising in a COVID world.  With advertising coming back somewhat, many clients want to simply take up where they left off.  Nielsen suggests that clients start rebuilding brand awareness:

“But while companies may want to focus on luring back customers as quickly as possible, a new Nielsen report warns that such short-term thinking may do lasting harm — and that it’s essential to balance activation with a long-term focus on brand awareness.

The pause in spend likely had an adverse effect on brand awareness for many companies,” the report says. “It’s atypical for brand awareness to drop to zero — even when brands go dark for long periods — but brand awareness does decay, which is why it’s normal to see very well-known brands maintain robust ad campaigns even during normal market conditions. Their sole goal is to combat decay. So it’s likely that much of the uptick in U.S. advertising that occurred in August was focused on awareness rather than activation.

Nielsen believes this approach should continue. “On average, it takes three to five years to recover equity lost because of halted advertising, and long-term revenue can take a 2% hit for every quarter a brand stops advertising.”

To see the complete story in Inside Radio click HERE.


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