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Thursday, September 1, 2011

Advertising's effects on the economy?

I was reading a chapter from my Advertising Book (Contemporary Advertising and Integrated Marketing Communications by Arens, Weigold, and Arens) when I came across this section of the history of advertising (bolding is my own emphasis):

"In 2001, the combination of a mild recession, a stock market decline, and the bust of the dot-coms contributed to a record decline in advertising activity. On September 11 of that year, terrorists attacked the United States and suddenly all marketing and advertising seemed to stop - not just in North America but also around the world. The end result: spending in the United States declined 6.5 percent to $231 billion, and overseas spending dropped 8.6 percent to $210 billion."

Advertising/Marketing clearly has a huge impact on what we spend our money on, and judging by this excerpt, how much we spend at all. I wonder if we could have avoided the post-2001 slump if advertisers had continued as if everything was business as usual. Thoughts?

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