Consumers shun advertising during recession

Consumers were less responsive to ad campaigns during the first three months of the year, with the automobile, travel and financial services sectors the worst hit, according to new research.

Marketing effectiveness tracking company, The Fournaise Marketing Group, has found that in the first quarter of this year marketing and ad campaigns around the world generated 21% less responses from their target audiences, compared to the first quarter last year.

Overall, responses to advertising in mature markets, such as Europe, the US and Australia, were the most hit with a fall of 28%. In developing markets, such as China and India, it experienced a relatively lower decrease of 14%.

The sectors which suffered falls of over 21% in consumer responses were the automotive, travel, airlines and financial institutions.

Conversely, industries which tracked positive growth in consumer responses to advertising were retail and FMCG.

Jerome Fontaine, chief executive and chief tracker of Fournaise, says the decrease is in line with what is going on in the world economy.

“Despite the stimulus packages released by the local governments, consumers and businesses in recession-hit countries in Europe, the US and Australia have been tightening their belts and controlling their expenditures, and this makes them much less receptive to the campaigns targeting them,” he says

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