Mark A Cella on Recession Advertising
In an article dated 4-17-09 called ‘Burger King to Boost Ad Spending’ distributed on the AdAge website, authored by Emily Bronson York, cites Marketing Director, Russ Klein, who acknowledges the strategy of the company to fiercely boost ad budgets amidst financial hard times.
Clearly seeing favorable good fortune during recession:
“…there is strong historical evidence around companies that step up with their innovation and advertising and their ability to move through economic downturns and they emerge with stronger brands on the other end.”
Mark A Cella on Economic Recession Advertising
Jim Surowiecki, author of Hanging Tough, published by New Yorker Magazine on the financial page back in April of 2009, advocates that much research indicates businesses who regularly devote resources in marketing and R&D during hard financial times end up extraordinarily better monetarily.
Mark A Cella on Economic Recession Advertising
The article cites a 1927 study by economist Roland Vaile that found that “firms that kept ad spending stable on recession advertising or increased it during the recession of 1921-22 saw their sales hold up significantly better than those which didn’t.” Similarly:
“A study of advertising during the 1981-82 recession found that sales at firms that increased advertising or held steady grew precipitously during the next three years, compared with only slight increases at firms that slashed their budgets. And a McKinsey study of the 1990-91 recession found that companies that remained market leaders or became serious challengers during the downturn had increased their acquisition, R. & D. and ad budgets, while companies at the bottom of the pile had reduced them.”
Strategic Planning Institute concluded through their own research that businesses whom cut investment during recessions grew at a smaller pace in the years after the hard economic climates ended.
Mark A Cella on Depression Advertising
Kraft brought out Miracle Whip in the great depression and it became the #1 dressing across the USA in only 6 months. The transistor radio was launched in the 1954 deflationary period by TI, and Apple launched its iPod in the 2001 recession.
Perhaps the most compelling example of successful recession opportunity is illustrated with Kellogg’s profound success during the Great Depression. Surowiecki relates that:
“While Post Cereals…cut back on advertising (during this period,) Kellogg doubled its ad budget and by 1933, even as the economy cratered, Kellogg’s profits had risen almost thirty percent and it…became…and remains the industry’s dominant player.”
History proves beyond a shadow of a doubt that courageous moves amidst recessions prosper significantly.
Surviving in this system of debt, known as our economy, is won by those stepping up to the plate and taking a chance when no one else will.
Get more ideas from Mark A Cella regarding recession advertising online by visiting Mark A Cella today.
