Great article in Ad Age today. Brands that cut spending in economic downturns lose share to private label products. Permanently. Some exceptionally smart marketers (P&G, L’Oreal) were identified as bucking the budget cutting trend last quarter, but the trend itself means that too many brands were pulling back on these critical ongoing investments. When times are tough, we all must focus more than ever on getting the most impact out of every dollar of spend. However, making cuts today that are proven to lead to permanent market share declines is exactly the sort of short-term thinking that got us into “this economy” in the first place. At least Wall Street can blame the Fed…
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