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Why You Should Be Advertising Now, Even During Slow Economic Times!

(The American Association of Advertising Agencies reports the following:)
  1. Advertising executive Roland S. Vaile tracked some 200 companies through the recession of 1923. In the April 1927 issue of Harvard Business Review, he reported that the biggest sales increases throughout the period were rung up by companies that advertised the most.

  2. PianoWorld.com has been on the Internet for more than ten years, we are established and trusted as a resource.

  3. Buchen Advertising tracked advertising dollars vs. sales trends before, during and after the recessions of 1949, 1954, 1958 and 1961. Not only did the company find that sales and profits dropped off at companies that cut back on advertising, it also found that, after the recession had ended, those same companies continued to lag behind the ones that maintained their ad budgets.

  4. A jointly-sponsored ABP/Meldrum & Fewsmith study of the 1970 recession again showed "that sales and profits can be maintained and increased in recession years and in the years immediately following by those who are willing to maintain an aggressive marketing posture."

  5. A follow-up 1979 study by ABP/Meldrum & Fewsmith revealed"that companies which did not cut advertising expenditures during the 1974 to 1975 recession, experienced higher sales and net income -- during those two years and the two years following -- than those companies which cut advertising in either or both recession years."

  6. McGraw-Hill Research's Laboratory of Advertising Performance reported "that business-to-business firms that maintained or increased their advertising expenditures during the 1981 to 1982 recession averaged significantly higher sales growth both during the recession and for the following three years than those which eliminated or decreased advertising." Those increasing saw an average sales growth of 275 percent over the next five years. Those who cut advertising realized an increase of only 19 percent.

  7. In 1982, Cahners Publishing Co., together with the Cambridge- based Strategy Planning Institute, reported that "during recessionary periods, those businesses (that spent more) tended to gain a greater share of market. The underlying reason is that competitors, especially smaller, marginal ones, are less willing or able to defend against aggressive firms." The study also pointed out that businesses that increased media advertising during the recessionary period gained an average of 1.5 points of market share.

  8. The Profit Impact of Marketing Strategy program, conducted by the Strategic Planning Institute, has been studying recessions since the 1970s. It has built a database of 3,000 business units and has looked at various measures of performance and related these to advertising expenditure. The key findings are that companies who increase advertising spending during recessions increased market share during the recession by an average of 1.5 percent and continue to increase market share in the subsequent recovery. Companies who cut advertising during recessions, increase market share by 0.2 percent during the recession (NOTE: all companies that do not go out of business in a recession tend to gain share) but lose on average 1 percent point in the subsequent recovery.

  9. A 1993 study of 127 brands advertising on television in Britain found that brands that increased their advertising spending by an average of 7 percent increased their market share by an average of 1. 1 percent; those that cut back ad spending (by an average of 8 percent) lost an average of 1.6 percent of market share.

  10. In the recession of the mid-1970s, Chevrolet increased its ad budget, while Ford cut back by 14 percent. The result: Chevy's market share rose by 2 points.
  11. During the recession of the mid-1974-75, Revlon gained market share from increased ad spending while Avon suffered from ad cutbacks
  12. During the Great Depression (1930s), Kellogg continued advertising while Post did not. The result: Kellogg's half-century domination of the dry-cereal market.
  13. In the 1960s and 70s, Schiltz was the Number Two beer in the nation behind Budweiser. During the recession years of the late 70s, Miller increased ad spending each year, hitting $59 million in 1979. By that time, Schlitz was spending 25% less than Miller. By 1980, Miller held the number 2 spot.
  14. MarketSense compared 101 household name brands during the recessionary period 1990-1991: Bud Light and Coors Light, both increased ad spending, saw sales increases of 15% and 16% respectfully. Pizza Hut sales rose 61% and Taco Bell's 40% thanks to increased ad spending.
  15. Advertising On Piano World Works! Start Today.
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