Interep Radio: Benefits of Advertising During Economic Downturns.

Interep recently compiled a research review and brand analysis on the benefits of maintaining or increasing advertising spending during periods of recession, entitled “The Power of Advertising Through Recessions: From Oxydol to Dell.”
As the paper points out, research studies on recessions dating back to the 1940s all point to the same basic conclusions:

• Companies that maintain advertising during times of recession experience higher sales and income during the recession and in the years immediately following than companies who cut advertising budgets.

• Recessions offer greater opportunity for companies to build market share than periods of limited growth or expansion.

• Continuing to maintain or increase advertising during a recession solidifies a company’s customer base, takes business away from less aggressive competitors, and positions a company for future growth during recovery.

The paper also points to a historical precedence for success among brands that advertise heavily during periods of recession. Dating back to the Great Depression of the 1930s, brands such as Camel cigarettes and Chevrolet were able to overtake top market positions from competitors through aggressive marketing campaigns. Procter & Gamble, a company noted for consistent spending during periods of recession, also spearheaded some of its best-known brands during the Great Depression, including Camay, Ivory,

Lava Soap and Crisco, via sponsored radio serials, better known as “soap operas.” As recently as the last recession, the paper points to Saturn and Dell Computers as two relative newcomers who took advantage of competitors relaxed marketing efforts to vault to the top of the respective categories.

Michele Skettino, VP/Marketing Communications commented, “The opportunities that a recession can offer advertisers willing to sustain strong ad budgets are well-documented. Each recession offers clear winners who took advantage of their competitors’ costcutting measures to steal market share. This recession will likely follow suit.”

Research Review and Brand Examples – “The Power of Advertising through Recessions: From Oxydol to Dell”

CLICK below (Adobe Acrobat required):

http://www.interep.com/pr/adv_recessions.pdf