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Business Decision, down economy do you Increase Ad Spending?

Discussion in 'Economics and Financials' started by padre31, Oct 6, 2008.

  1. padre31

    padre31 Premium Member Luxury Box

    Nov 22, 2007
    inching to 100k posts
    Ran into this one in a college Advertising Class, one side of the argument is:

    "In a down economy Capital must be preserved to keep core business functions operating, save money by advertising less"

    The other side of the coin was:

    "In a down economy increase advertising to gather more incoming revenue albeit at a slower rate then during a good economy"

    Of course the course full of prospective Mad Men thought spending should be increased to garner more revenues...

    What say you?
  2. jdang307

    jdang307 Season Ticket Holder Club Member

    Nov 29, 2007
    San Diego
    I say, I read an article a long time ago that showed companies, who increased not just ad spending but any investments during down times, rebounded the best when the economy itself rebounded.

    of course such investments must be made with extreme caution, and nobody knows how long a downturn may last.

    Its a calculated risk either way, but to close up shop completely wouldn't be smart either.

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