This view of advertising’s role in marketing fails to appreciate that it is not merely a current expense but rather is a strategic activity, which should be regarded as an investment in the product or brand. Reducing advertising spend may yield short term savings but may well lead to long term loss of market share.
In the late 1970s Adidas cut advertising spend on its sports shoes and found that the brand was not strong enough to maintain market share in the face of new competitors and its has struggled to recover its former position. Edwin L. Artizt, chairman and chief executive officer (CEO) of Procter and Gamble (the world’s largest advertiser, with an annual ad budget of well over $2 billion) once drew an analogy between advertising and exercise. Both provide long term-term benefits and it is easy to postpone both as their results are hard to quantify.
There are no reviews yet.