A blog by Campbell Consulting Group, based in Bend, Oregon.

Monday, June 1, 2009

Recession Marketing: Should You Cut Your Advertising and PR Budget?

New research from Oregon State University and Western Oregon University shows that companies that companies that don't cut theor advertising and public relations spending in a recession have a competitive edge in the future.

"Firms that are able to increase advertising during recessions are likely to have stronger future earnings, according to a new study by researchers at Oregon State University and Western Oregon University.

"The researchers studied data from five recessionary periods since 1971, sampling data from more than 3,000 firms listed on the public stock exchange that demonstrated a four-year advertising contribution to earnings.

"They found that when adjusting for inflation, advertising expenditures contributed to increased earnings by firms for up to three years."

Read the rest of the article here.