Re: Advertising Budget Cuts

From: Rob Frankel <rob_at_robfrankel.com>
Date: Mon 30 Apr 2001 02:53:51 -0500

HEATHER CARROLL <heather_at_enginehousemedia.com> WROTE:

>With all of the expertise available on this list, I
>wanted to get some various qualified reasons as to why
>companies should resist severly handicapping or cutting
>their advertising budgets out in times of market downturns.

>Anyone want to comment on this?


Welcome to America, land of the free and the short-
sighted weenies who run from quarter to quarter in an
attempt to keep Wall Street at bay!

In good times, corporate types puff up their earnings
to look bigger against their competitors. In bad
times, they cut expenses to increase squeezed profit
margins.

The smart money knows that in bad times, the weenies
cut their budgets, which means less advertising clutter
and lower ad rates. They jump in, realizing that
mindshare can be bought at fire sale prices. Bolt
that on to a strong branding strategy that delivers on
its promise, and they're poised for rocketing market
share when things get good.

Going even further, if the brand really is solid, when
the economy dumps again, those who buy into it are less
likely to defect.

At least, that's how it goes in my corner of the world...


Rob Frankel, "Yes, I really do turn users into evangelists
for your brand."
Big Time Branding (TM) http://www.RobFrankel.com
The Book/Tapes: http://www.RevengeOfBrandX.com
FrankelBiz for FREE at: http://www.FrankelBiz.com
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Received on Mon Apr 30 2001 - 02:53:51 CDT