Advertising in broadcasting and
in the print media is a pretty good way
to tell how business feels about the
future. If executives think the economy
is going to be healthy, then they lay on
the ads. But if they see a recession
in the cards, then advertising is
generally the first thing to be cut back.
That's what happened in this area in 1975
and it appears to be happening again.
Already, the area's number one
homebuilder is cutting back Fox, and
Jacobs has canceled as much as 30 percent
of its 1980 ads.
Company executive Bob Harper says the
economic forecast is not rosy.
An executive with Southland Corporation,
the 7-Eleven people, says his company
plans to cut 25 percent of its
advertising because of an upcoming
slump. But another Southland officer
denied that, saying the company will
wait and see how deep the recession is.
We see cautious planning.
We see prudent questions
by our clients saying, do we really need
to expend these funds now?
And those that feel that
they need protection are setting aside
reserves.
Agencies like Ray Trappes, Blum Co.
are advising clients to buy more ads, not
fewer traps, says firms should be more
aggressive when the competition cuts
back. But he describes his clients
as nervous, and the advertising cuts
show that Dallas companies believe
the recession is just around the corner.
Scott Pelley, The Texas News.