July, 2010

Media Deflation Helps Advertisers Do More With Less

Although 76 of the 100 Leading National Advertisers (LNA) cut their spending for 2009, that doesn’t mean they did less advertising. A new, previously unheard-of, phenomenon called media deflation has helped many do more for less.

One cause is that mass media are hemorrhaging audiences left and right. With newspapers, that’s old news, but as of the week of July 4, broadcast television – ABC, CBS, FOX and NBC – had the lowest number of prime-time viewers since 1990. Another cause is that many advertisers just aren’t Read more →

Should You Advertise More Or Less In A Recession?

Some 80 years ago, when William Wrigley, Jr., was on a business trip on a DC-3, another passenger asked him why he spent so much on advertising when his chewing gum business was doing so well.

“How fast are we flying?” asked Wrigley.

“Oh, about 150-200 miles an hour,” said the passenger.

“Then since we’re doing so well, why not shut down the engines?”

In deep recessions, when cash is tight, there’s a strong and justifiable temptation to cut back on expenses – or at least hold the line. But how much Read more →