Cutting Spending Hurts Brands Long Term

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…

About Andy Atherton
I am currently an SVP at AppNexus. I previously spent four years as COO and cofounder of Brand.net, a pioneer in programmatic reserve technology and leading digital media buying solution for top brands. Prior to Brand.net, I was Vice President of Pricing and Yield Management for Yahoo!, responsible for maximizing monetization of a global portfolio of display inventory worth $2B annually. Beginning in 2002, I created, developed and globalized Yahoo’s PYM function over a period of five years. Prior to Yahoo!, I was president and cofounder of Optivo, a venture-backed start-up that developed price optimization software for e-commerce retailers. More on LinkedIn...

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