During the Great Depression, Kellogg's doubled its advertising budget while competitors cut spending, shifting heavily into radio between 1929 and 1933. The bet paid off: the company's profits jumped 30% while the economy collapsed, letting it dominate the cereal market.
This company's profits grew 30% in the middle of a depression. Now, as we head into a recession, what can we learn from them? In 1929, when the Great Depression hit, most CPG brands pulled back on their ad budgets, but not Kellogg's. They actually doubled their advertising spend and moved aggressively into the new medium of radio. By 1933, they blew past their competitors, reaching record profits at the same time. Now, savvy brands could learn from them, investing in emerging mediums as a way to blow past the competition as we enter this downturn.
