Comments on: Statistics on Advertising during a Recession

By: Doug Kessler

Doug Kessler — Thu, 27 Nov 2008 17:59:00 +0000

We trot these kind of statistics out every recession and most marketers either just don’t buy it or simply haven’t got the budget to do anything about it.

Instead, they use recession as a way to feel better about under-investing — at least the other guys are doing it too.

By: Paul Dunay

Paul Dunay — Tue, 25 Nov 2008 12:07:00 +0000

@ Papia – sorry papia I dont do advertising on my blog

By: papia

papia — Tue, 25 Nov 2008 05:30:00 +0000

Hi,

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on monthly basis.

We are not interested in yearly deal.
.
Our site ishttp://www.webprofits.com.au

Our budget is $30/month.

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Regards

Pauleen

By: Paul Dunay

Paul Dunay — Mon, 24 Nov 2008 23:11:00 +0000

@ tracey

Totally agree – especially the convincing the CFO part

thanks for commenting

By: Experiential Marketing Podcaster

Experiential Marketing Podcaster — Mon, 24 Nov 2008 22:42:00 +0000

That is some very interesting data. Specifically the 1985 results:

By 1985 – sales of the businesses that maintained or increased their ad spend during that recession
* Sales had risen 256% over those that had cut back on advertising

@Tracey makes an excellent point previous to my comment.

Now off to read the paper by Andrew J. Razeghi.

By: Tracey

Tracey — Mon, 24 Nov 2008 21:37:00 +0000

I have a hunch (but no data yet to back it up) that marketing/ad spend during a recession is actually more critical than during good times. During a recession, a solid company can steal marketshare from the companies that are sinking, and come out of the recession much stronger.

Of course, this is still a hard sell to my CEO.

By: Paul Dunay

Paul Dunay — Mon, 24 Nov 2008 14:44:00 +0000

@ Michael

Thanks for commenting Michael

I think the idea here is that the companies that maintained or increased their marketing expenditure actually gained market share. It is one of the most effective ways of beating your competitors and in essence made them more successful in the long run (even if that meant more % market share)

I think the real challenge for marketers is that we are in the middle of a biggest transformation ever - so if you are going to make changes to your marketing plans - *what* to keep and what to shut off isn't as clear as it has been in the past.

p

By: Michael A. Stelzner

Michael A. Stelzner — Mon, 24 Nov 2008 14:22:00 +0000

Paul;

These findings make a lot of sense. I think the bigger question is this:

Were these companies successful because they advertised OR where they advertising because they were already successful?

Mike