Ad Spending During Tough Times

While business are forced to run leaner, cutting costs and budgets, it's important to maintain a balance for the sake of surviving and future growth. In times of economic downturn it's all about strategy and making marketing investments that will provide measurable results and positive ROI.

A study of over 600 businesses conducted by McGraw-Hill Research found that businesses that maintained or increased their ad spending during a previous recession (1981-1982) averaged higher sales growth during the recession and 3 years post recession compared to businesses that eliminated or decreased their advertising during hard times.
Three years later, those same businesses experienced a 256% rise in sales over those organizations that chose to cut back on advertising.

2001 brought more tough times but again, aggressive businesses that either maintained or increased advertising dollars also increased market share 2 1/2 times more than those who cut expenses.

Flash forward to 2009. Does your business fall in the agressive cateogory?