Growth5 Blog

Thursday, March 19, 2009

Where's the Stimulus For Advertising?

Disclaimer: Our businesses tend to get more work when companies increase their advertising budgets.

In this article, Fortune suggests that there should be stimulus money earmarked for advertising.

1. "The government's stimulus plan won't work as planned if we don't get consumers spending again. But in the nearly $800 billion package, there is one thing missing that would surely help accomplish this: advertising. To get people spending again, and the economy moving, the government needs to provide help for businesses in America to advertise their products and services."

2. "There's a reason that America is the largest consumer market in the world: It also happens to be the largest advertising market in the world. Advertising works -- and it has been proven again and again for over a century. Every successful business spends money on advertising, everything from public relations to TV to Internet-search advertising."

3. "Unfortunately, some consumers today simply can't spend, since they've lost their jobs or their nest eggs. This is the group which is rightfully a major focus of the current economic stimulus program.

However, there is a much larger group of consumers that I believe holds the key to our recovery: those who can spend, but aren't. They are sitting on the sidelines and waiting, even though they have the money and security to be spending. How do we stimulate them to spend again? With advertising.

It's a mistake to think of advertising merely as a cost -- it's an investment, and like all investments it can have a wide-reaching impact. Incentives for advertising need to be an important component of any plan to stimulate our economy."

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I think we can all agree there have been worse stimulus ideas being tossed around.

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