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Marketers under pressure to demonstrate how expenditures drive shareholder value will appreciate these new findings. Canadian researchers investigated guerilla marketing’s potential impact on a company’s stock price. In the first study of its kind, such campaigns were found to either boost or depress company shares, depending on the form of the appeal (emotion versus rational) and its mix with product types.
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How long can large- and medium-size brands, with stable sales histories, afford to halt broad-reach advertising? The answer, according to a new study, is about two years before sales and market share start to shrink. Those brands are the exception. Previously declining brands, especially small ones, will see sales drop even further when going dark for a year.
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