Last Friday, February 18, California Governor Jerry Brown told state agencies they would no longer be able to purchase or distribute branded promotional products such as logo apparel, promotional coffee mugs, and more. The move was the latest of Brown’s attempts to decrease the state’s multi-billion dollar budget deficit; previous initiatives to reduce the deficit included minimizing the number of employees who carry government issued cell phones.
During a recession, many companies follow Brown’s train of thought and cut their advertising budget as an attempt to save money. However, studies released by industry experts at PPAI show that there are many upsides to marketing in a down economy. For example, “marketing during a sluggish economy generates a more positive perception of your company; it shows a strong commitment to your products and services.”
That positive perception helps to bring in business – even during the downturn. In fact, over half of the survey respondents said that they did business with a company after receiving a promotional item.
If California really wants to reduce their deficit, perhaps Brown should encourage state agencies to spend more on promotional coffee mugs and other branded items. That might help to stimulate business and attract tourists to the sunny state of California.
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