Advertising in a Downturn
Advertisers and marketers looking to protect the long-term profitability of their brands during periods of economic uncertainty should look to maintain their levels of adspend, according to research published in the Institute of Practitioners in Advertising’s report Advertising in a Downturn.
These findings were the conclusions of a seminar hosted by the IPA to investigate the business effects of cutting marcoms budgets during tough times.
Speakers included Peter Walshe of Millward Brown, Karl Weaver of Data2Decisions, Keith Roberts of Malik PIMS, and Peter Field, who discussed quantitative analysis of some 880 advertising and marketing effectiveness case studies from the IPA’s dataBANK.
The main insight from their collective analysis was that slashing budgets during a downturn may appear to have a healthy impact on profits in the short term, but brands that do so risk losing market share once an economic recovery has begun.