The decision to scale back or eliminate the advertising budget is never easy for marketers. The decision to "go dark" can have various causes, from a broad economic recession to narrower industry or company-specific revenue or growth challenges. Whatever the cause, "going dark" has both short- and long-term implications.
Background overview
Most empirical findings on the impact of "going dark" reflect marketing choices taken during recessionary periods. However, the insights are also relevant when industry and company-specific factors drive "darkness".
Let's start with the most extreme situation: recession. The economy contracts, most often because consumer spending declines (admittedly some recessions...