Journalism and commerce

The crisis in journalism is really a crisis in advertising. The depth of recession has had a calamitous effect on publishers' revenues and that puts pressure on the creative side of the business.

There has always been a symbiotic relationship between journalism and advertising. Good journalism creates a good place to advertise. Commercially successful publications tend to breed good journalism.

But companies shouldn't just consider advertising as a way of preserving a marketing environment. Advertising during a recession works.

This from Direct Marketing magazine 1991:

[The American Business Press (ABP) analysed] the severe 1974 to 1975 recession. Relying on questionnaires submitted by advertisers, the study tracked the sales and profits growth of 173 industrial companies between 1972 and 1977. The companies were divided into two groups: those that reduced advertising during the recession; and those that did not reduce advertising.

The study found that the companies that reduced advertising achieved minimal sales growth in 1974, suffered a sales decline in 1975 and increased sales by 70 percent during the five-year period. For companies that maintained their ad budgets, sales suffered no slowdown during the recession and grew 150 percent for the entire period. Profits showed a similar pattern. Most notably, the momentum gained by the steady advertisers during the recession helped them to grow at a faster rate in 1976 and 1977.


The original article can be found at Allbusiness.com.