Increased Marketing in the Economic Downturn
Not all companies will slash marketing budgets in the current economic environment. People still have to eat, drink and take showers so the consensus from research firms like IBIS and publications like Advertising Age is that some brands and products need ad campaigns. For example, IBIS pointed out the following expected 2009 growth rates in food:
- Snack food 5.3%
- Tortillas 3.1%
- Confectionary products 2.7%
And an article in Advertising Age points out that sales of private label products continue to rise. To regain market share, companies selling branded products may need to discount and also advertise promotions.
While first impulses in response to economic turmoil may prompt marketers and agencies to pull back, thoughtful and carefully pitched campaigns to new clients could help your agency improve business prospects.[Sources: Hein, Kenneth and Miller, Steve, “Why Some Brands Cheer a Sour Economy,” Brandweek, 10.12.2008; Neff, Jack. “Price Pressure Hits Package Goods,” Advertising Age. 10.27.2008]