HOW TO TREBLE PROFITS

Greymouth Evening Star, 27 October 1931, Page 10

HOW TO TREBLE PROFITS

CURE FOR THE SLUMP.

LONDON, September 3.

“The time for special effort through advertising is when the clouds are darkest, when men’s minds need to be reassured, recaptured,” said Mr Gilbert Hodges, president of the Advertising Federation of America, speaking in London yesterday. Mr Hodges, who was the guest of honour at a luncheon at the Savoy Hotel, described how a moderate expenditure in advertising produces great .financial results-

The Advertising Federation of America, said Mr Hodges, had made a survey of the experience of advertisers during the past two years, and truly amazing results had been reported, “proving conclusively that fearless, intelligent advertising pays big dividends in bad times as well as in good times.” Instances were given of well-known companies whose records proved that it was profitable to maintain or increase their selling and advertising efforts during the present bad time. . One tobacco company increased its advertising appropriation in 1930 by 5,000,000d01. As a result, its net profits were increased by 12,500,000d01. A fruit drop company produced a sweet of the same ingredients as before, but of a different shape- This was news which made good advertising copy. The advertising appropriation was increased 15 per cent., resulting in increased sales of 149 per cent. Further examples were given of companies which had shown particular ingenuity in the creation of new ideas and in the development of new markets. In each case they had made good use of advertising. Steamship companies had found a gold-mine in the week-end cruise; a railway company had secured a'nrandnew patronage through vigorous advertising of a special kind of train; and the owner of a chain of restaurants had started an advertising campaign offering all one could eat for GO cents or one dollar. Sales immediately jumped ahead of all record. ’“There are many other instances,’ added Mr Hodges, “of sound thinking, smart advertising, and aggressive selling.”