MediaPost: Promos Cut Into Advertising's Share Of Marketing
In a major shift of marketing dollars, consumer advertising - which accounted for about a quarter of marketing spending in 2002 - went down to only about one in six marketing dollars in 2003, according to a study done by a promotions publication. At the same time, trade advertising and consumer promotions picked up the slack and expanded further.
Traditionally, promotions and other types of "below-the-line" advertising pick up in bad economic times, as they tend to have more accountable results and more immediate effects, even though they are more of a pain to conduct. In recessions, that pain barrier is overcome more easily because of the desperation of both clients and their marketing agencies.