Why should you increase your advertising budget in a recession?

Recession—it’s the inescapable word these days, isn’t it? Well, it doesn’t have to be a dirty word. Recession can be a savvy marketer’s best opportunity to get noticed. There are several well-know examples of this. In fact, a recent cover story in Advertising Age, boasts about various brands which were birthed as a result of recession. These include the IBM personal computer in 1981 and the iPod twenty years later. But, one of my personal favorites is the story of the Kellogg’s. brand because it illustrates how a small company can make it big through smart marketing (or it could just be that I love breakfast cereal). Either way, the story goes something like this (don’t quote me on all of the nitty gritty particulars)…

During the Great Depression, Post was the leading cereal brand. In fact it was the only cereal brand people would have thought of at the time. But, due to the Depression, money was tight and sales were falling. Post figured they did not need to continue advertising because they “owned” the market (for cereal) and they needed to cut expense. Cereal was considered a luxury anyway.

Kellogg’s, on the other hand, took advantage of the economy that was suffering. They created a positive ad campaign featuring Tony the Tiger and the very positive and enthusiastic Kellogg’s slogan “They’re GREAT!” They DOUBLED their ad budget, and bought ad spots in newspapers and radio time across the nation. Americans loved Tony the Tiger and the positive message he sent during a very negative time. Kellogg’s brand bucked the trend, and grew quickly, in a time when money was tight by keeping their brand top-of-mind.

Today,Kellogg’s remains a top cereal company in the US—perhaps even the #1 cereal company. Why? Because they unleashed the power of advertising.

What are you doing for your brands?