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What Happens If Businesses Stop Advertising

Should businesses stop advertising? Should marketing be one of the resources that they cut from their expenses?  

NO – absolutely and unequivocally NO.  

If anything, your marketing budget should be increased. Why? 

Since the pandemic, the increase in living has reached new highs. Barely staying afloat, and holding on by a thread, are phrases that so many of us are hearing, saying, and experiencing. So inevitably, all businesses are cutting costs, making the changes to their business that they feel will help keep the lights on and the doors open.  

Let’s look at what advertising does for your business.  

What does advertising do for my business?  

Promoting your business is crucial for your business for the following reasons:  

  • It creates brand loyalty   
  • It increases online traffic  
  • It attracts new customers  
  • It provides a positive image  
  • It helps you to remain competitive   
  • It encourages new business  
  • It keeps you at the forefront of customers’ minds  
  • It makes you money  

For more information on why you should consider marketing your business investment and not an expense, why not take a look at one of our earlier blogs, ‘Do You See Marketing as an Investment or Expense?’ by clicking on the link below:  

Now let’s take a look at what would happen to your business should you take away the budget for advertising and marketing.  

What would happen if my business stops advertising?  

Cutting your marketing budget will be like cutting off a toe; you might think it isn’t doing much until you are forced to work without it. You will never believe the saying ‘You don’t realise how much you need something until it has gone as much as you will when your business starts to deteriorate – which it is guaranteed to if you cut your advertising and marketing.  

Marketing and Advertising helps your business by:  

  • Providing insights   
  • Providing information   
  • Creating customer awareness  
  • Encourages sales  
  • Influences people   
  • Gives your business a competitive edge   
  • Enhances good-will  
  • More employment opportunities  
  • Provides opportunities for business growth  

According to Economist Peter Field, it can take up to 5 years for brands to recover from cutting their advertising and marketing budgets. We have put together an example of what cutting advertising can do to a business, even those as big as McDonald’s.

In 1990-91 McDonald’s cut their advertisement budgets, which subsequently left their competitors at an advantage. For example, Pizza Hut’s sales were up by 61% and Taco Bell’s sales were up by 40%, all whilst McDonald’s sales plummeted by 28%.  

Businesses that stop advertising budgets are less likely to build a brand that increases or maintains their voice and share of the market. Although we are in the middle of uncharted territory, the pandemic has left us questioning many things about life and business. We strongly urge you to rethink cutting the budgets of marketing and digital enhancements. 

We would say that these areas of your business you should be building on and putting more of your money or time into, as the possibilities and prospects are endless.  

 For more information on why you should not stop advertising your business have a, read of one of our earlier blogs ‘Why You Should Not Stop Marketing’ by clicking on the link below: 


How do you feel about business advertising? Do you have a budget for marketing your business or do you skimp on marketing due to misinformed information? Perhaps you were considering cutting your advertising budget, but this blog has encouraged you to look at making changes elsewhere within your business. We would love to know what you think about business advertising and your thoughts on how business advertising has encouraged and enabled your business to grow – Let us know in the comments below.