pcba/SENTRY

Keep Advertising

Posted by pcbasentry on August 18, 2009

From the Markup and Profit Blog

A recent article by Jim Hinshaw in the HVACR Today newsletter brought home the truth of why it is necessary to advertise 24/7/365, forever.

In 1989 and 1991, two recession years, Jell-O, Doritos and McDonald’s all cut their advertising budgets. Their sales dropped anywhere from 26% to 64%.

During that exact same period of time, and in the same market places, Jif, Kraft and Pizza Hut increased their advertising and you guessed it:

  • Jif had a 57% sales increase
  • Kraft had a 70% sales increase
  • Pizza Hut had a 61% sales increase

Going back to 1949, 1954 and 1960, Buchen Advertising Agency reported that companies that cut their advertising never caught up to those that didn’t when the economy turned around.

And going back still farther, in 1927, the Harvard Business Review stated that the companies that advertised on a regular basis in 1923 experienced the largest increase in sales after that recession was over.

The handwriting is on the wall my friends. This recession is going to come to an end in spite of the politicians and when it does, those of you who have been diligent and kept advertising are going to be in a very good place to grow your business.

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