New Ad-​ology Study: Reduced Advertising During Recession Negatively Impacts Consumer Perception

cash_padlockPerceived Success of Banks, Retail, Automotive Tied to Advertising More than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling. Likewise, a vast majority perceives businesses that continue to advertise as being competitive or committed to doing business. The latest Ad-​ology Research study, “Advertising’s Impact in a Soft Economy,” analyzes consumer perception about businesses that continue to advertise, and those that do not, in the current economy. The study finds advertising appears to play a key role in consumers’ view of how a business is doing, and by not advertising, businesses may be sending a warning signal to current and potential customers. “It is critical to advertise in the current economic climate, to maintain long-​term positive consumer perception of your brand,” said C. Lee Smith, president and CEO of Ad-​ology Research. “Advertising not only assures consumers of a business’ reliability in a soft economy, but it can influence where and what they buy, especially when the ads address concerns about value,” Smith said. Other key findings: 

  • 40% of consumers use coupons more now than a year ago
  • Most consumers are as willing or more willing to pay more for ‘healthy’ or ‘organic’ products than they were a year ago
  • A ‘deeply discounted price’ was the number-​one factor that would make consumers more likely to purchase a big-​ticket item (+$1,000)
  • TV, newspaper, direct mail, and Internet top local media from which consumers saw/​heard an ad within the last 30 days that led them to take action
  • Store Web sites ranked second only to search engines as the way consumers research products and shop online

Advertising’s Impact in a Soft Economy is available for purchase through Ad​-ology​.net, and includes 63 data charts and additional marketing insights.

C. Lee Smith

C. Lee Smith

CEO and Founder at SalesFuel
C. Lee Smith is the President/​CEO of SalesFuel — a firm he founded in 1989. He was named one of the 14 Leading Sales Consultants by Selling Power magazine in 2018. Lee is the creator of the AdMall® and SalesFuel COACH™ SaaS platforms. He is also a Gitomer Certified Advisor, expert on the Sales Experts Channel and a C‑Suite Network Advisor.
C. Lee Smith

@cleesmith

CEO of @SalesFuel | Bestselling Author of "SalesCred" and "Hire Smarter, Sell More!" | Keynote Speaker | Certified Behavioral Analyst | Sales Credibility Expert
So, You're Hiring Again – keep in mind the difference between hiring Millennials and Gen Z. https://t.co/IFnamjrjfB… https://t.co/1epwsoK8tX — 1 day ago
C. Lee Smith