Study: Reduced recession advertising = negative consumer perception

More than 48% of U.S. adults believe that a lack of advertising by a retail store, bank, or auto dealership during a recession indicates the business must be struggling. Likewise, a vast majority perceives businesses that continue to advertise are competitive or committed to doing business.

The latest Ad-ology Research study, “Advertising’s Impact in a Soft Economy,” analyzes consumer perception about businesses that continue to advertise, and those that do not, in the current economy.

The study finds advertising appears to play a key role in consumers’ view of how a business is doing, and by not advertising, businesses may be sending a warning signal to current and potential customers.

“It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand,” said C. Lee Smith, president and CEO of Ad-ology Research. “Advertising not only assures consumers of a business’ reliability in a soft economy, but it can influence where and what they buy, especially when the ads address concerns about value,” Smith said.

This is a great study to take on our next call to help a potential advertisers see that just because customers are not buying, the are still creating perceptions about the products and services they will eventually buy.

Read about the study

Comments

[creative service agency]

I think it's really accurate. Advertising results to positive consumer perception.

-Daniel

[Josh Gordon]

Thanks for you comment Daniel. It's nice to know that sometimes consumers actually notice what advertisers do.

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[lacoste shoes 2010]

Experience never misleads; what you are missed by is only your judgement, and this misleads you by anticipating results from experience of a kind that is not produced by your experements. Do you think so?

[Software Testing Services]

Its true that advertising helps a lot by having the information about latest views of the consumer and about the progress of the business. And also advertising populates the product to a wide range of consumers.

[Study in Ukraine]

Lately, not just recession but social media is changing the traditional advertising systems. That report might not have taken social media into consideration.

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