Value of Advertising in a Downturn“Planning is bringing the future into the present so that you can do something about it now. “ —Alan Lakein
While U.S. gross domestic product (GDP) rose 4.8% during 2007, advertising spending did not keep pace. In fact, the national Universal McCann forecast published last week put U.S. ad spending growth for 2007 at a truly disappointing 0.7%.

On the one hand, it’s flattering that our industry, advertising, is first in one area: as a leading indicator of the nation’s economic health. I only wish we didn’t owe that position to being first on the chopping block when our clients look for ways to improve a sagging bottom line.

More disturbing was a decrease in ad revenue for the second consecutive quarter—the first time that has happened since the 2001 recession.

One bright spot, however, is projected to be direct mail — especially data-base direct mail that drives viewers to personalized URLs (PURLS). Universal McCann recorded that 2007 national direct mail budgets grew by 7.5 percent, and direct mail is expected to be a growth media for 2008. A recent Pitney Bowes/International Communications Research study found that “73 percent of consumers prefer to receive product announcements and offers via US mail from companies they do business with.” And the Direct Marketing Association recently reported that nearly 40% of consumers prefer to respond to an advertisement online, making PURLs an area of deep interest for marketers. Other predicted bright spots in ad spending will be: outdoor, cinema and some newer media and event marketing.

Which brings me to the topic, “What Is The Value of Advertising During an Economic Downturn.” Read the uploaded file!