Tuesday, September 16, 2008

Do Marketing Dollars Spent Indicate Your Company's Survival? You Be the Judge

In reading about the direct effect that Wall Street's debacle might have on the advertising industry, I found an interesting statistic:

According to AdvertisingAge:

"...Merrill and Lehman are tiny players in the world of media spending. Lehman's spending was trimmed in recent years, falling to $1.2 million in 2007 and accounting for only $501,900 in the first half of 2008, according to TNS Media Intelligence. Merrill, likewise, is not a huge spender: $37.1 million in 2007 compared with $38.2 million in 2006."

Now, I get it...there's alot more here than the failure to make their marketing budget a priority. But if you want to read about the subprime loan crisis or the state of the financial industry, all you need to do is pick up any news publication printed over the past 2 years to find it. I'll not be beating that dead horse here.

However, I find it interesting that, in times of crisis, these large firms significantly cut back their marketing budgets. Have these companies budgeted themselves right out of business?

The article later goes on to discuss that Bank Of America, already a huge spender in the advertising arena, is now in a position to INCREASE their marketing dollar thanks to its absorption of Merrill Lynch.

"Bank of America's media spending increased to $406.2 million in 2007 from about $237.3 million in 2006, according to TNS Media Intelligence."

So many business owners think that Marketing is the first budget that needs a trimming when times get lean. Is it any wonder that when they cut Marketing, they begin a downward spiral that often times leads their business towards failure? Meanwhile, companies that thrive are the ones that people know about. The ones that give the appearance of success. How do companies achieve such recognition? It's all about the Marketing.

But maybe, being the owner of a marketing company, I'm biased. So you tell me...do you see any correlation between success and effective marketing?


Until Next Time,

Jacki

1 comment:

Alan Underkofler said...

Jacki! You are right on with this post! The companies that find creative ways to spend more on marketing are the ones that will have explosive future growth! In fact I would argue that now is the best time to double your marketing budget! Why? Because you will have greater exposure for your marketing dollars as your competitors cut back.

Alan Underkofler - http://www.followupsuccess.com