Tuesday, November 3, 2009

Please read this before you cut that budget

Like everybody else in our business, we've heard a lot from clients and prospects about cutting or eliminating advertising budgets.

Now, advertising is not a panacea by any stretch (please be impressed that I spelled that right -- whether it is the correct usage here or not is another question). But it can certainly help if properly applied.

Just ask Kellogg's who, according to this piece in Ad Age, credits a 17% increase in ad spending for increased earnings. I especially wish the guy who told me yesterday that he would really like to take his organization's entire marketing budget and just hire three more salesmen would read it.

Here is part of what the CEO said:

"Our commitment to investing in advertising continues to be a key to our business model and to achieving our goals. Rather than take advantage of lower rates to reduce the cost of our advertising investment, we see this as a great opportunity to increase our investment and build even stronger brands in the future. Higher spend combined with media deflation and a push on efficiency is driving a significant increase in advertising pressure."

Just a little food for thought while you're working on that 2010 budget.

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