Select a page

The Effect of Recession on Advertising

As marketers in times of economic unrest, we are unfortunately faced with the likelihood of reduced advertising spending.  While this seems like a logical principle, the following data suggests that when times are tough, the tough should continue to advertise.

A History of Positive Effects on Advertising during a Recession:

In 1929: Customers bartered everything from farm animals to coal for a La-Z-Boy chair months before the stock market crashed, and the company did everything they could to keep customers comfortably reclined in their chairs.

In 1932: Revlon became one of the most recognized cosmetic brands in the world.

From 1981-1982: Businesses that maintained or increased their ad spend during this time averaged higher sales growth during the recession and in the following 3 years.

By 1985: Sales has risen 256% over those who had cut back on advertising of the businesses that maintained or increased their ad spend during that recession.

In 2001: Aggressive recession advertisers increased market share 2 ½ times the average for all businesses in the post-recession.

In 2002: There was NO improvement in market share although 80% of businesses increased their advertising spend during this time of economic expansion.

* Why? – Because everyone has increase ad spending!

In 2003: Apple continued to invest on ad spending when the Dow was at historical lows over a 10-year period.

Sources:

http://www.scribd.com/doc/7450921/Innovating-Through-Recession-Andrew-Razeghi-Kellogg-School-of-Management

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

 
Marketing 2020
White Paper Download

Please enter you name and email
address below to gain instant access to Marketing 2020!



Contact me to schedule a Marketing 2020 Lunch and Learn


×