Companies with the resources and foresight to act boldly during the regional economic turmoil stand to reap significant benefits at the expense of less astute competitors, according to an advertising agency study.
The DMB&B study, titled Advertising in Times of Economic Difficulty, shows that multinationals have a distinct advantage during downturns.
Advertising is difficult for most companies in the present economic environment, but multinationals are protected by profits from outside the region.
The study said multinationals could take advantage of opportunities such as reduced competitive advertising, lower rates, and increased television and radio consumption.
DMB&B vice-chairman Sam Hill said 12 key studies of advertising in recessions during the past 71 years all indicated companies which spent big during downturns received significant results in market share.
He pointed to examples such as Budweiser beer, which advertised during prohibition in the United States and became the market leader in the country for the next 50 years. Kelloggs advertised during the US Depression of the 1920s and 1930s and had similar results.