This case example was produced by D2D limited. It is based on an econometric model for a brand that advertises every year. It shows the expected reduction in sales that would occur if the brand stopped spending for one year. In the long run, this drop was much bigger than the media money saved (although the brand would have made a slightly higher profit in the initial year). The model estimated that the brand would lose £1.7m from the bottom line in total and it would take 5 years for sales to recover to historic levels.

You can learn more about this topic in this report by the Ehrenberg-Bass Institute.

What to learn more? Try asking Virtual Dan White.