Intuitively, I'd say it doesn't hold water: Entrenched incumbents would generally tend to have more money than new competitors, so the incumbent can afford more

Intuitively, I'd say it doesn't hold water: Entrenched incumbents would generally tend to have more money than new competitors, so the incumbent can afford more advertising to drown out that of the challenger. The only net gain I can see is for the advertising industry, which extracts money from both challenger and incumbent.