As reflected in a Kellogg School of Management study, increasing advertising spending during economic expansion often yields no improvement in market share, because 80% of your competitors are also increasing their spending.
 
Conversely, at least half of businesses reduce their advertising spending during economic downturn, stated the Association of National Advertisers in a recent article. Scores of studies, such as that recently conducted by Penn State, reveal a hidden positive: an opportunity to achieve a relative competitive advantage for businesses simply by maintaining current levels.
 
Highlights of findings from Kellogg and Penn State studies:

• Businesses that maintained or increased their advertising spend during recession averaged higher sales growth during the following three years.
• Within four years, the businesses that maintained or increased their advertising spend during that recession experienced a 256% growth in sales over those that had cut back on advertising.
• A decade later, an additional study found that aggressive recession advertisers increased market share 2½ times the average for all businesses during the post-recession.

Another perspective to consider is that advertising is a cumulative effort. Robert Wilson, marketing consultant for Newspaper Association of America, explains, " Maintaining brand recognitition should be considered an on-going business investment" and "the moment it stops, it begins to lose power immediately - and future sales are in jeopardy"
 

The internet is now the most popular source of news after TV, according to the Pew Research Center for the People & the Press, which released its year-end roundup of news media consumption last week. While TV is still king of the hill, its steady decline in the face of Internet competition bodes ill in the long term.
 
In 2008, 40% of the respondents said they got most of their national and international news from the Internet, versus 35% for newspapers in 2008. The Internet's share is up from 24% in 2007, while newspapers also increased slightly, from 34%. The long-term trend is even clearer: the Internet's share has more than tripled from 13% in 2001, while the newspapers fell by almost a quarter - from 45%, in those six years. (The figures add up to more than 100% because Pew accepted multiple responses to account for ambiguity in its survey of 1,489 adults from December 3-7. Although Pew did not explain this ambiguity, it might include respondents citing online newspapers or TV news Web sites along with the traditional medium itself.)
 
Although print newspapers-especially big metro dailies-appear to be locked in an irreversible long-term decline, newspaper Web sites have had big increases in audiences. In October 2008-the last month for which data is available-newspaper websites attracted a total of 68.97 million unique visitors-up 64% from 41.96 million in October 2004.
 
TV still takes first place as a news source, claiming 70% share in 2008-but that's down from 74% in 2007, and a peak of 82% in 2002.
 
Significantly, the percentage is lower among adults under the age of 30, who have taken to the Internet news enthusiastically. Fifty-nine percent of respondents in this age bracket said TV news was their primary source, while an identical percentage tapped the Internet. That's a big change from 2007, when 68% of people under the age of 30 choose TV, versus just 34% for the Internet.
 

 Pardon me for constantly referring to Charleston, and using it as an example. But I don't think we are much different than most cities, and I certainly know it well. Just as you should know what exactly is happening in your town...in your field of expertise...with your competitors...with your customers, here's perception vs. reality in Charleston, SC --

 

 Letter to the Editor: Charleston Post&Courier 1/14/2009  

 

What an unfortunate spin in these economic times to write a negative article on dining in Charleston.
Disparate events were linked to arrive at the reporter's foregone conclusion that the economy and the Charleston restaurant industry are "cooked".
 
The article titled "Economy takes a toll on local dining" by Warren Wise attempts to link the closure of three vastly different restaurants in three different parts of Charleston with the media's hysterical reporting on the collapse of the American economy.
 
For one, these are not the worst of times. The jobless rate in the United States is currently just over 7 percent, perhaps the highest in 15 years, but nowhere near the 25% rate during the Great Depression.
 
Let's take a breath. Times were tougher during the Carter administration with 10% unemployment and mortgage rates of 15%. A 30-year fixed mortgage is currently about 5 percent.
 
Context seems to be lost in recent reporting on the economy. Even those of middle years remember several cycles of economic downturn: the aforementioned Carter years, the real estate bubble of the late 1980's, the dot-com bubble of the late 1990's and the market and economic downturn following Sept. 11, 2001.
 
The economy is cyclic, like the climate. Our economy will rebound and we have yet to perish from global warming.
 
Mr. Wise buried the fact that the closure of the Boathouse on East Bay was part of a strategic plan by Crew Carolina to reposition itself in the Charleston market by opening a new Boathouse on Ellis Creek.
 
Seeking new opportunities in the Charleston market is not a sign that the economy is taking a toll. It's a sign that a company is finding and pursuing the promise of growth. That's called business.
 
The Boathouse on East Bay was a marvelous place where we shared meals and special moments and occasions with more than a half million customers and friends over a decade. We value those memories and those we came to know. We look forward to continuing that relationship at the Boathouse on Ellis Creek, the Boathouse at Breach Inlet and at Carolina's.
 
The story ignored facts provided that indicated that our catering division, Carolina Catering, has tripled in business during 2008, with 2009 promising to be even better. The strength and draw of Charleston as a destination for dining and events -weddings in particular-would seem to indicate we are blessed with some sectors of business that are, or appear for now to be, recession proof.
 
We stand at the beginning of 2009 with a great opportunity for optimism. Let's begin the year with our eyes wide open to the potential for growth and the facts at hand. --Batt Humphreys, Richard Stoney, Crew Carolina, Romney Street, Charleston
 
Thank you, Mr. Humphreys; Thank you, Mr. Stoney; I couldn't have said it better.