How to Thrive in This Economic Downturn

Independent studies show that advertising in a downturn gives you increased share of voice, increased market share and increased profitability over time.

McKinsey study:

The companies who increased their spend in a recession were the only ones whose profits rose substantially when the economy recovered.

Patrick Barwise, London Business School Professor of Management & Marketing:

The advantages of maintaining or increasing marketing effort are greater than the short-term benefits of reducing spend.

Hillier analysis of 1,000 companies on the PIMS (Profit Impact on Market Strategy) database after the early 1990s recession:

The companies who had cut their marketing budgets saw ROCE (return on capital employed) decline by 0.8% after the recession. Those who increased their marketing activity saw an increase of 4.3%.

McGraw-Hill research, analyzing 600 companies from 1980-1985:

The sales of companies who had kept advertising during the 81-82 recession had risen 256% over those who had not.

When the Going Gets Tough, the Tough Don't Skimp on Their Ad Budgets

Research shows that companies that consistently advertise even during recessions perform better in the long run.
Don't Let Hard Times Derail Your Advertising
Recession Data on The Value of Marketing Through Economic Downturn!


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Callaway Golf Company reported "record net sales of $366.5 million, a 10% increase as compared to $334.6 million for the same period in 2007."