Mark A Cella on Recession Advertising
In the article Burger King to Boost Ad Spending, which appears in the April 17, 2009 online publication of AdAge.com, author Emily Bronson York quotes Burger King’s chief marketing officer, Russ Klein, explaining the philosophy behind his company’s strategy of substantially increasing advertising spending during the present economic downturn.
Mr. Klein obviously sees great opportunity in recession stating:
“…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
New Yorker Magazine’s James Surowiecki’s article dated, April 20, 2009, for the financial page. He suggests in his article that several studies prove that businesses that continually invest in marketing and research and development while amidst recession do enormously better than companies that decrease spending in those areas.
Mark A Cella on Depression 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 Recession Advertising
During the great depression Miracle Whip was introduced by Kraft in 1933 and became the best-selling dressing in America within six months. Texas instruments introduced the transistor radio during the 1954 recession and Apple did the same with the iPod in 2001.
Surowiecki points out an encouraging sample of recession success achieved by Kellog’s huge success during the great depression:
“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.”
The preponderance of historical evidence is strongly conclusive. Companies can significantly benefit by employing bold strategies during recession.
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.
Learn more about Mark A Cella Internet recession advertising. Stop by Mark A Cella’s sites where you can find out more.
