• who we are
• |
• what we do
• |
• things to consider

• Should I increase my advertising budget during a recession?

Recession talk...I guess it’s not “if” anymore, but how bad is this one going to be? Recessions are scary words, but in reality many actually thrive. The damage, however, will be felt by everyone, and naturally people spend less during recessions.

In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies covering 16 different SIC industries from 1980 through 1985. The results showed that business-to-business firms that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. By 1985, sales of companies that were aggressive recession advertisers had risen 256% over those that didn’t keep up their advertising.

In analysis of the 1990-91 recession, Penton Research Services, Coopers & Lybrand, in conjunction with Business Science International, found that better performing businesses focused on a strong marketing program enabling them to solidify their customer base, take business away from less aggressive competitors, and position themselves for future growth during the recovery.

A series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that advertising aggressively during recessions not only increases sales but increases profits. This fact has held true for all post-World War II recessions studied by American Business Press starting in 1949.

One major business-to-business advertiser summed it up best. “When times are good, you should advertise. When times are bad, you must advertise.”

Advertising and branding are even more important during troubling times. Furthermore, you have to be BETTER then your competition, and you need to make sure potential new clients know that you’re the Best.

Finally, if you’ve relied on referral business as your main means of marketing new business, you may want to modify this process to a certain extent. Reality is that you are going to have to increase exposure in your market to your brand name, and that may require you doing something outside the box.

- Material compiled from a variety of sources, including American Business Media, McGraw-Hill, Penton Research Services, Coopers & Lybrand, in conjuction with Business Science International.

• New Stats for Google Earth - Over 350 Million Downloads
• More Google Earth Users than People in Brazil
• New Satellite to Sharpen Google Earth

• Satellite Imagery

"Satellite imagery is most useful when combined with GPS, electronic maps, and localized data into a geographic information system (GIS). Perhaps the most popular example of this is the Google Earth (TM) application, which recently made commercial satellite imagery freely available to almost anyone on the planet via the Internet. Other examples include Microsoft's Virtual Earth (TM) and Yahoo's similar service. These mapping portals have brought satellite imagery 'down to earth' and have increased public awareness of space-based imagery across the globe."

- www.space.commerce.gov