HERE’S PROOF! Reduced Advertising During Recession Negatively Impacts Consumer Perception

Our most viewed post of 2009, by far, is this piece on the importance of advertising in a recession. The economy seems to be improving, but a consistent, continued advertising presence is still crucial to ongoing success. Make sure your clients know that their advertising tells consumers that they are ready to do business!

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You’ve always known it to be true. Now there’s proof to back it up!

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.Bestof2009

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.

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There Are 2 Responses So Far. »

  1. [...] knew that already – in fact, our most popular post of 2009 reported how reduced advertising negatively affects a consumer’s perception of a business. [...]

  2. [...] knew that already – in fact, our most popular post of 2009 reported how reduced advertising negatively affects a consumer’s perception of a business. [...]

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