Historical Evidence for Maintaining Advertising Spend in a Recession

Geoffrey Precourt
WARC Online

Russ Klein, Burger King's chief marketing officer, seems to be running from the pack. In the midst of recession, he's not cutting costs. He's doubling down.

"With the economic downturn, it's important for us to be front and center with value messaging, innovation and strategy," Klein told Advertising Age. "There is strong historical evidence around companies that step up with their innovation and advertising and their ability to move through economic downturns and emerge with stronger brands..."

Burger King spent close to $300 million on paid-media advertising in 2008. With discounted prices and an increased budget, Klein expects to generate the equivalent of a 20- to 25-percent increase in media impressions with a television-driven advertising program that will begin in August 2009.
In tough economic times, advertising is often an early budget cut when companies try to realign their bottom line in the face of recession-driven reductions in income.