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"I Think I Need To Cut My...
...advertising...we're headed for a recession." Think again.
Decades of research actually suggest that this could be the best time to increase ad spending, thus preserving...or growing...market share. In fact, companies that cut spending in prior recessions experienced decreased sales and profits well after the recession itself.1
Why?
Because contrary to popular belief, during the last fifty years, consumer spending during reversionary periods actually went up.2Companies that cut back on advertising weren't there when consumers were ready to buy.
Can you afford to make that mistake?
Sources: 1) Kevin Downey, Media Life, 2001; 2) Bernard Ryan Jr. Advertising in a Recession, 1999.
History Tells the Story Decades of research
point to an interesting, if not surprising conclusion.
A study published in the 1927 Harvard Business
Review reported that among 200 companies tracked during the recession of
1923, those that advertised reported the largest sales increased
throughout the period.After tracking advertising dollars vs. sales
trends before, during and after the 1949, 1954, 1958, and 1961 recessions,
Buchen Advertising found that sales and profits dropped off at companies
that reduced advertising. Further, it was found that these same companies
continued to lag behind those that had maintained advertising, even after
the recession ended.A 1970 (and 1979 follow-up) study by ABP/Meldrum
& Fewsmith revealed that companies that did not cut their advertising
during the recessions of 1970 and 1974-75, experienced higher sales and
act income than those that did cut advertising.After the 1981-82 recession, McGraw-Hill Research
Laboratory of Advertising Performance reported that companies maintaining
OR increasing their advertising during that time frame averaged
significantly higher sales growth - not only during the recession but for
the following three years as well.A joint study between Cahners Publishing Company
and Strategy Planning Institute released in 1982 pointed out that
businesses that increased advertising gained an average of 1.5 points of
market share.During the recession of 1989-91, MarketSense
compared 101 household brand names. Those brands that continued to
advertise or increased advertising during the recession saw significant
sales increases. Those that decreased advertising saw sales drop
significantly.Reducing advertising during recession can be an expensive mistake.
Source: Bernard J. Ryan Jr. Advertising in a Recession, 1999.
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Direct Mail Will...
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Allow you to target your
message to a very specific audience. |
Allow you to cost effectively
focus only on high probability prospects. |
Expose your product or
service to a larger market. |
Prepare prospects for
telephone follow-up. |
Without advertisement a funny
thing happens..........NOTHING! |
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