Marketing strategies and consumer insights for recessionary times.
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Companies Maintaining or Increasing Ad Spending in the Current Recession
Advertising in a Recession
Author: Bernard Ryan, Jr.
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The country is now officially in a recession. The economy has slowed down. And those who make decisions about advertising, or who advise those who make decisions, may be asking many questions that have been asked in the face of earlier recessions: What to do? Cut back on advertising? Stop introducing new products? Or push on, knowing that advertising is an investment that can bring future increases in market share and return-on-investment?
This book offers a comprehensive review of the literature on the value of advertising during a recession and an understanding of the experience of the industry during such a time.
Should Firms Increase Advertising Expenditures During Recessions?
Authors: Kristina D. Frankenberger, Roger C. Graham
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Over the past several years, the 4A's Value of Advertising Committee has engaged third-party researches to determine the value of advertising in the marketing communications mix. The purpose of these commissioned studies is to go beyond the sometimes fuzzy metrics of “marketing results” or anecdotal whether third-party research would find proof of advertising’s demonstrable financial value.
Kristina D. Frankenberger and Roger C. Graham, under the auspices of the Marketing Science Institute (MSI) prove the value of advertising during a recession in this insightful, concise summary of their work.
Other Industry Resources
Marketing to the Post-Recession Consumers
(Decitica Marketing Strategy and Research, November 2009)
This research fills a major gap in marketers’ understanding of how the recession is shaping consumer behavior. Specifically, this research by Decitica concludes: 1) The effects of the Great Recession on consumer behavior are so profound that many of the assumptions underpinning consumer segmentation are no longer valid; and 2) Marketing strategies that do not fully recognize the diversity of consumers’ recession experiences won’t have the desired potency in the post-recession world.
Luxury or Necessity? The Public Makes a U-Turn
April 23, 2009, Social and Demographic Trends, a project of the Pew Research Center
No longer do substantial majorities of the public say a microwave oven, a television set or even home air conditioning is a necessity. Instead, nearly half or more now see each of these items as a luxury. Similarly, the proportion that considers a dishwasher or a clothes dryer to be essential has dropped sharply since 2006.
Reaching the Recession-Proof Consumer
With the country’s economy in the midst of a long-term recession, the behavior of American consumers is changing. The consumer confidence index reached an all-time low at the end of 2008, and spending is dropping rapidly. Although the downturn is seemingly affecting everyone, consumers actually respond in ways that vary significantly. And while almost everybody is cutting back, there are many different methods to trim costs. Looking at these differences can create opportunities for manufacturers and advertisers, even during a prolonged recession.
ANA Brand Building and Budget Strategies Survey
This May 2009 Survey by the Association of National Advertisers documents how marketers are reacting to the current economic climate.
Different Age Groups, Different Recessions
May 14, 2009, Social and Demographic Trends, a project of the Pew Research Center
The ongoing recession has had different impacts on different age groups in America. Adults 65 and older—most of whom have already retired and downsized their lifestyles—have escaped its full fury. Adults in late middle age (50 to 64) have seen their nest eggs shrink the most and their anxieties about retirement swell the most. Younger adults (ages 18-49) have taken the worst lumps in the job market but remain relatively upbeat about their financial future.