Radio Sales in the Time of Coronavirus
16 March 2020 · Features · News · Selling Radio Direct
Selling Radio Direct with Pat Bryson
If you haven't already heard this from a client, you probably will soon: "I want to cancel my advertising because of coronavirus"
Any time a large outsi...
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Great article. I wonder if you can share the citations for the "research shows" part?
Thanks for the question George. Pat has sent this information to assist you.
https://www.thebalancecareers.com/advertising-in-a-bad-economy-39250
The historical research information goes back to the 1920s.
In 1927, Roland Vaile reported in the Harvard Business Review that companies who advertise the most experienced the biggest sales increases
In 1949-54 and 1958-61 Buchen Advertising study showed sales and profits dropped when advertising was reduced and continued to lag for several years after the recessions ended.
Studies by the American Business Press examined the relationship between advertising and sales in 143 companies during the severe 1974-1975 downturn
They found that companies that did NOT CUT ADVERTISING either year had the highest growth in sales and net income during the 2 study years and the following 2 years.
1981-82: McGraw-Hill Research showed firms that maintained or increased ad expenditures averaged significantly higher sales growth during the recession and for the following three years.
In both the 1974/75 and the 1981/82 recessions there were long-range advantages of keeping a strong advertising presence.
Companies that cut advertising in 1981/82 increased sales by only 19% between 1980 and 1985.
Companies that continued to advertise in 1981/82 enjoyed a 275% sales increase.