www.forbes.com
Open in
urlscan Pro
151.101.2.49
Public Scan
Submitted URL: https://www.firstinsight.com/e3t/Ctc/DE*113/c113w04/VWth-F3s-z9FW6ZVy-H31Z6sRW1c61D74S1yVbN8064215nCTJV3Zsc37CgGHTW38_kw53Dx7...
Effective URL: https://www.forbes.com/sites/gregpetro/2022/11/04/how-brands-can-turn-a-recession-into-marketing-gold/?sh=127e306bd312&...
Submission: On November 07 via api from US — Scanned from DE
Effective URL: https://www.forbes.com/sites/gregpetro/2022/11/04/how-brands-can-turn-a-recession-into-marketing-gold/?sh=127e306bd312&...
Submission: On November 07 via api from US — Scanned from DE
Form analysis 1 forms found in the DOM
<form class="search-modal__form"><input class="search-modal__input" type="text" placeholder="Search" autofocus=""><button class="search-modal__submit" role="button" tabindex="0" title="Submit"><svg class="fs-icon fs-icon--arrow-right"
xmlns="http://www.w3.org/2000/svg" viewBox="0 0 24 24">
<path d="M12.6 6.4l4.6 4.6H3v2h14.2l-4.6 4.6L14 19l7-7-7-7z"></path>
</svg></button></form>Text Content
* Billionaires
Billionaires
View All Billionaires
* World's Billionaires
* Forbes 400
* America's Richest Self-Made Women
* China's Richest
* India's Richest
* Indonesia's Richest
* Korea's Richest
* Thailand's Richest
* Japan's Richest
* Australia's Richest
* Taiwan's Richest
* Singapore's Richest
* Philippines' Richest
* Hong Kong's Richest
* Malaysia's Richest
* Money & Politics
* 2020 Money
* Innovation
Innovation
View All Innovation
* 5G
* AI
* Big Data
* Cloud
* Cloud 100
* COP26
* Consumer Tech
* Cybersecurity
* Enterprise Tech
* Future Of Work
* Games
* Healthcare
* Innovation Rules
* Magnit BrandVoice | Paid Program
* SAP BrandVoice | Paid Program
* Science
* ServiceNow BrandVoice | Paid Program
* Social Media
* Sustainability
* Tanium BrandVoice | Paid Program
* Transportation
* Venture Capital
* Wind River BrandVoice | Paid Program
* Leadership
Leadership
View All Leadership
* Careers
* CEO Network
* CFO Network
* CHRO Network
* CIO Network
* CMO Network
* Crowe BrandVoice | Paid Program
* CxO
* Dell Technologies BrandVoice | Paid Program
* Deloitte BrandVoice | Paid Program
* Diversity, Equity & Inclusion
* Education
* Forbes EQ | Paid Program
* Forbes The Culture
* ForbesWomen
* Leadership Strategy
* Microsoft BrandVoice | Paid Program
* Under 30
* Working Remote
* Over 50
* Money
Money
View All Money
* Banking & Insurance
* ETFs & Mutual Funds
* Fintech
* Hedge Funds & Private Equity
* Investing
* Investing Basics | Q.ai
* Markets
* Personal Finance
* Premium Investing Newsletters
* Retirement
* T. Rowe Price BrandVoice | Paid Program
* Taxes
* Top Advisor | SHOOK
* Wealth Management
* Forbes Digital Assets
Forbes Digital Assets
View All Forbes Digital Assets
* Dashboard
* Traded Assets
* Research
* Events
* Crypto Portfolios
* Forbes Virtual NFT Billionaires
* Investment Newsletters
* Business
Business
View All Business
* Aerospace & Defense
* Energy
* Food & Drink
* Hollywood & Entertainment
* Manufacturing
* Media
* Mitsubishi Heavy Industries BrandVoice | Paid Program
* Policy
* Retail
* SportsMoney
* Tableau BrandVoice | Paid Program
* Small Business
Small Business
View All Small Business
* Entrepreneurs
* Franchises
* Small Business Strategy
* Lifestyle
Lifestyle
View All Lifestyle
* Arts
* Boats & Planes
* Cars & Bikes
* Dining
* ForbesLife
* Forbes Travel Guide
* Spirits
* Style & Beauty
* Travel
* Vices
* Watches
* Real Estate
Real Estate
View All Real Estate
* Commercial Real Estate
* Forbes Global Properties
* Residential Real Estate
* Forbes Store
Forbes Store
View All Forbes Store
* U30 Collection
* ForbesWomen Collection
* Core Collection
* Vetted
Vetted
View All Vetted
* Gear
* Health & Wellness
* Home & Kitchen
* Style
* Tech & Electronics
* Travel
* Hotels & Lodging
* Coupons
Coupons
View All Coupons
* Purple
* Squarespace
* Verizon
* Lululemon
* AT&T
* Lowe's
* Brooks Brothers
* Tory Burch
* Dr Martens
* Dell
* Chewy
* Advisor
Advisor
View All Advisor
* The Best Credit Cards Of 2022
* Best Balance Transfer Credit Cards
* Best Cash Back Credit Cards
* Best Travel Credit Cards
* Best Business Credit Cards
* Today's Mortgage Rates
* Today's Refinance Rates
* Best Mortgage Lenders 2022
* Best Life Insurance
* Best Travel Insurance 2022
* Covid-19 Travel Insurance
* Online Car Insurance Quotes
* Car Insurance Companies
* Cheap Car Insurance
* Pet Insurance
* How Much Is Pet Insurance?
* Cheap Pet Insurance
* Personal Loans
* Debt Consolidation Loans
* Student Loan Refinance
* Business Loans
* Best Online Banks
* Best CD Rates
* Best Savings Accounts
* Forbes Advisor UK
* Health
Health
View All Health
* Body
* Best Diets
* Healthy Aging
* Best Medical Alert Systems
* Medicare
* Medicare Advantage Plans
* Medicare Supplement Plans
* Medicare Advantage By State
* Health Insurance
* Hearing Aids
* Best Hearing Aids
* Senior Living
* Mind
* Best Online Therapy
* Family
* Lists
* Video
* Newsletters
Newsletters
* Crypto Confidential
* Editorial Newsletters
* Investing Digest
* Premium Investing Newsletters
* Forbes Magazine
Forbes Magazine
View All Forbes Magazine
* Forbes Asia
* Free Issue of Forbes
* Latest
Latest
* Coronavirus Coverage
* Daily Cover Stories
* Dark Capital
* Editors' Picks
* Visual Web Stories
* Featured
Featured
* 30 Under 30 2022
* Amazon Ads BrandVoice | Paid Program
* American Heart Association BrandVoice | Paid Program
* AWS Transformation BrandVoice | Paid Program
* Black Is Tech Conference 2022
* EY BrandVoice | Paid Program
* Forbes Insights with Adobe | Paid Program
* Forbes Insights with American Express | Paid Program
* Forbes Insights with Cloudera | Paid Program
* Henley & Partners BrandVoice | Paid Program
* How Three Under 30 Founders Use Technology And Creativity To Shake Up
Food, Media And Transportation
* How Three Young Entrepreneurs Are Harnessing Social Media, Web3 And
Venture Investment
* Maserati BrandVoice | Paid Program
* Redefining The Future Of Power: Celebrating 10 Years Of The Forbes Power
Women's Summit
* Right Now In Tech: Grace Hopper Celebration 2022
* Right Now In Tech: PyCon U.S. 2022
* ServiceNow BrandVoice | Paid Program
* Snowflake Summit 2022
* Tech Trailblazers: The Women Disrupting Disruptive Industries | Paid
Program
* This College Dropout’s $200 Million Company Is Changing How Gen Z Buys
Underwear
* Advertise with Forbes
* Report a Security Issue
* Site Feedback
* Contact Us
* Careers at Forbes
* Tips
* Corrections
* Privacy
* Do Not Sell My Personal Information
* Terms
* AdChoices
* Reprints & Permissions
* © 2022 Forbes Media LLC. All Rights Reserved.
Subscribe
Sign In
BETA
This is a BETA experience. You may opt-out by clicking here
MORE FROM FORBES
Nov 7, 2022,02:47pm EST
Returning Interest Payments May Drag On Consumer Spending In 2023
Nov 7, 2022,01:45pm EST
Relief For The Digital Data-Starved $3.9 Trillion Municipal Bond Market
Nov 7, 2022,01:39pm EST
Hong Kong Rallies On Incremental Loosening Of Zero COVID
Nov 7, 2022,12:22pm EST
The $1.9 Billion Powerball Jackpot: Odds, Taxes, Value
Nov 7, 2022,11:21am EST
Housing Market Braces For Rising Layoffs ‘Soon’ As Mortgage Lenders, Home
Sellers Cut Thousands Of Jobs
Nov 7, 2022,10:54am EST
Looking For Mastodon Stock? This Twitter Alternative Just Hit 1,000,000
Users—Here’s How To Invest In It
Nov 7, 2022,10:13am EST
Lockheed Martin A Top 25 Dividend Giant With 2.49% Yield
Edit Story
Investing
HOW BRANDS CAN TURN A RECESSION INTO MARKETING GOLD
Greg Petro
Contributor
Opinions expressed by Forbes Contributors are their own.
Following
New! Follow this author to stay notified about their latest stories. Got it!
Nov 4, 2022,02:14pm EDT|
New! Click on the conversation bubble to join the conversation Got it!
* Share to Facebook
* Share to Twitter
* Share to Linkedin
How Brands Can Turn a Recession Into Marketing Gold
getty
Cutting back marketing and related technology budgets was a leading cause of
handwringing among recession-spooked execs at a recent fashion industry event I
attended in New York. The question wasn’t whether a recession is imminent but
how deep it might be. The jury is still out on the depth and breadth of the
expected recession for 2023 as the data below suggest.
In fact, a fresh survey by First Insight finds that roughly 75% (3 out of 4) of
retail executives polled believe a recession in the US has already begun while
consumers feel a bit differently.
Given these unknowns, stockpiling cash may seem like a logical strategy during
expected economic downturns, but history suggests otherwise.
As industrialist Warren Buffett once observed, "The best chance to deploy
capital is when things are going down." Or, as Henry Ford is often quoted as
having said, “Stopping advertising to save money is like stopping a watch to
save time.”
But the instinct at most companies is compelling, according to Bob Liodice,
Chief Executive Officer of the Association of National Advertisers. In a recent
report in The Wall Street Journal, Liodice warned brands, “If you have not
already been asked, you’re going to be asked to cut your budgets. This is not
the time to do that.”
The proof, according to two Oregon State professors, is in the data. A study by
K.D. Frankenberger and R. Graham, published in 2003, looked at the performance
of 2,662 companies based on whether they increased or cut advertising spending
during recessionary periods.
MORE FROMFORBES ADVISOR
BEST TRAVEL INSURANCE COMPANIES
By
Amy Danise
Editor
BEST COVID-19 TRAVEL INSURANCE PLANS
By
Amy Danise
Editor
The authors determined that increased advertising during a downturn gives
companies, “a firm asset by contributing to financial performance for up to
three years” after the recession is over. The study noted that boosting
advertising during a recession also enhanced the benefits of increasing
advertising during nonrecessionary times. For public companies, there was the
added benefit of higher share prices.
Other studies of recessions as far back as 1921-22 have found similar results.
One of the most famous examples, detailed in The New Yorker in 2009 during a
historic economic crisis, is the battle in the late 1920s between the two
leading breakfast cereal brands of the day, Kellogg and Post.
PLAY Forbes Money Video Settings Full Screen About Connatix V197230 Read More
Read More Read More Read More Read More Read More Read More Read More Read More
Read More Read More Read More Can The Stock Market Bulls PassThis Test? 1/1
Skip Ad Continue watching after the ad Visit Advertiser websiteGO TO PAGE
When the Depression first hit, Post reined in expenses and cut back on
advertising. Kellogg doubled its ad budget, moved aggressively into radio
advertising, and heavily pushed its new cereals. When the dust had settled,
Kellogg’s profits had risen almost 30% and it had become, and still is, the
industry’s dominant player.
Walmart is perhaps the best modern example of staying the course through thin
and thick. Among founder Sam Walton’s more famous quotes, when asked what he
thought about the then-current recession — “I thought about it and decided not
to participate.”
Check out my website.
Greg Petro
Early on, Greg Petro realized there was a better way for companies to make
decisions with high degrees of variability or uncertainty. He devoted himself to
revolutionizing
... Read More
* Editorial Standards
* Print
* Reprints & Permissions
Andrew Wang On Breaking Into The Mortgage Business
Cookies on Forbes
YOUR CHOICES REGARDING COOKIES ON THIS SITE
Please choose whether this site may use cookies or related technologies such as
web beacons, pixel tags, and Flash objects ("Cookies") as described below. You
can learn more about how this site uses cookies and related technologies by
reading our privacy policy linked to below. Your choices on this site will be
applied globally. This means that your settings will be available on other sites
that set your choices globally. You can change your mind and revisit your
preferences at any time by accessing the "Cookie on Forbes" button on the left
side of this site.
While we need to use required cookies to make our site work, we won't set
optional cookies unless you enable them.
WE AND OUR PARTNERS
We and our partners: process personal data such as IP Address, Unique ID,
browsing data for: Informationen auf einem Gerät speichern und/oder abrufen |
Personalisierte Anzeigen, Anzeigenmessung und Erkenntnisse über Zielgruppen |
Personalisierte Inhalte und Inhaltemessung | Produkte entwickeln und verbessern
| Genaue Standortdaten verwenden | Geräteeigenschaften zur Identifikation aktiv
abfragen.
Accept All Choose Cookies
Privacy Statement
Powered by: