Mark A Cella on Economic 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 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.“

In a very large study of business conduct, by Strategic Planning Institute, derived that corporations which decreased investing in advertising during recession arose far slower in the following years after economic hard times, as opposed to free-spending competition.

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.“

The preponderance of historical evidence is strongly conclusive. Companies can significantly benefit by employing bold strategies during recession.

Success, in this debt based economy, during the hardest times is achieved only by those courageously taking advantage of options in front of them.

Learn more about Mark A Cella Internet recession advertising. Stop by Mark A Cella’s sites where you can find out more.