Think Twice Before Cutting Ad Budgets

When sales are down, companies understandably become more cautious with their money. If the pattern continues, managers are often subject to finding ways to cut costs. Typically, one of the first budgets to be cut is the advertising budget! But why? Many companies believe they have enough brand awareness that cutting advertising won’t have an effect on their company. Alternatively, statistics have shown that reductions in advertising or marketing may have actually hurt companies in the past. Here are some great examples – During the 1974-1975 Recession, American Business Press and Meldrum & Fewsmith’s study found that “Companies which...

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