It Pays To Promote During a Recession

On August 25, 2009, wrote:

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“Companies that maintained or upped their advertising during the 1981–82 recession, had gains in sales in the short-run as well as the long-run. The McGraw-Hill Research study analyzed 600 companies from 1980 to 1985, and found those that advertised aggressively throughout the recession had sales 256% higher than ones who cut back on advertising.”

The National Bureau of Economic Research (NBER) has confirmed that the U.S. economy has been in a recession since December 2007. Many economists believe the current recession will be the worst since the recession of 1981-82. Times are rough, but that doesn’t mean you should lower your advertising budget; you actually should maintain or raise it, or just advertise smarter.

A recent study by McGraw-Hill Research showed that companies that maintained or upped their advertising during the 1981–82 recession, had gains in sales in the short-run as well as the long-run. The McGraw-Hill Research study analyzed 600 companies from 1980 to 1985, and found those that advertised aggressively throughout the recession had sales 256% higher than ones who cut back on advertising.

For most companies during recessionary times, it is hard to maintain or even raise their advertising budget. This is why it’s important for companies to get the most return on their marketing budget investment. Lakeshore Branding uses a proven process of internet marketing, which leads to measurable results and strong ROI during this time in our economy.


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One response to “It Pays To Promote During a Recession”

  1. spudart says:

    It would be interesting to see this same model applied to the recession of the early 90s.

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