Some advertisers tend to pull back on advertising during economic downturn. I see several advertisers are contemplating to cut down on advertising and few have already done so. This knee-jerk reaction is natural amid news of slowing economy, job losses, turmoil in auto sector and sub-par (read sub-prime) performance by the financial sector. I believe that retrenchment decisions are largely influenced by emotional and psychological stimuli from the external environment. I would digress momentarily to share a joke with you in support of the above premise. A friend, Ahad Rasheed, sent this joke and I quote with some additions.
An old man used to sell hot dogs. His eyesight was weak so he neither read newspapers nor watched TV. All he did was selling hot dogs and he sold lots of them and had a good income. Old man son graduates from a business school and joins him in business. He tells his father that economy is not doing well and he should save some cash, as Cash is King! The old man started buying fewer buns and meat, closed his shop before sunset to save on Hydro bills and consequently his sales went down. His brother retired from a government job and had seen the old man prosper by selling hot dogs. So he wanted to invest in hot dog business too. He seeks old man advice. Guess what, the old man advised; the economy is slow and hot dog sales are down. It is recession!
Posted by Fazal Siddiqi 
Posted by Fazal Siddiqi