RE: Advertising Budget Cuts
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.
Coincidentally, this came in my email this morning, from
Center for Media Research at MediaPost:
In a recent article in MediaLife Magazine, Kevin Downey
cites research that shows that a recession or slowdown
is perhaps the best time to increase spending and build
market share. He says that Cahners Publishing and SPI,
for example, found in 1982 that advertisers that had the
highest increases in ad spending increased market share
by 1.5 points during a recession. That compares to only
a 0.2 point increase during normal economic times for
the same level of increased spending.
The entire article is at
http://www.medialifemagazine.com/news2001/apr01/apr02/4_thurs/news1thursday.html
Also remember that consumer spending is the most important
aspect of a healthy and growing economy. Anything that keeps
the public parting with its money ends up being good for GDP
growth and the stock market too.
--Lisa
Lisa Wenninger
Director of Product Management
Solbright
www.solbright.com
Received on Tue May 01 2001 - 10:15:35 CDT
