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?
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.
