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Mark A Cella on Recession Advertising

On April 17, 2009 an article titled ‘Burger King to Boost Ad Spending’ published online at AdAge.com, written by Emily Bronson York, quotes the Chief Marketing Director, Russ Klein, demonstrating the strategy of the company to dramatically increase marketing budgets during recession.

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 Depression 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 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.”

Also cited was the results of a major study of corporate behavior by the Strategic Planning Institute which concluded that companies that reduced ad spending during recessions grew less quickly in the years following recessions than more free-spending competitors did.

Mark A Cella on Economic 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.

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.