While we can’t yet agree about whether we’re in, heading into, or not facing a recession, there is consensus that the US economy is slowing down as we head into 2008. (Due to the delay in compiling data, recent recessions haven’t been officially acknowledged until they were over or almost over.) The Advertising Lab recently did a nice post about advertising during a recession, including the useful graph below that charts sales growth for companies that did or did not cut advertising during tough times. Not surprisingly, companies that kept advertising (and presumably tightened their belts in other areas) did much better in the long term. In 2008, I think the same will be true of companies and their promo budgets. Companies that skimp on their trade show promos and direct mails this year may save a little cash now, but they’ll be paying a steep price in the future as their more savvy competitors steal market share and brand awareness.