Advertising During Hard Times
Mar 24, 2009 — Emily
Times are tough. If your company is like most, you're trying to figure out how to save an extra buck or two wherever you can. You need to prioritize what is most important and how that is going to fit into an ever-shrinking budget.
One area that seems to get cut at the first sign of economic hardship is advertising and marketing because, when compared to payroll or rent, it can easily be viewed as a superfluous expense. Full disclosure: obviously persistence in advertising is very important to us here at 3dB Creative — our livelihood depends on it — but more importantly, did you know that the livelihood of your company could depend on it as well?
Many articles and studies have been published recently on the positive affects of aggressive and innovative advertising during a recession. Perhaps it seems a bit counterintuitive at first: Why waste money if your company has already built a name for itself? Besides, your competitors are cutting back on advertising as well. Right?
Wrong. The reality is that if you cease to exist in the public eye, then you cease to exist, period. If your company puts itself out there via advertising during a time when everyone else has decided to hunker down and wait for the storm to pass, you've already outshone the competition. You have a face for the public while the public is wondering if your competitor still exists. Convincing potential customers that your company has staying power gives them confidence in your product, creating trust, creating a bond, creating revenue.
Economists say that advertising is actually less effective during times of economic boom because everyone with an idea has the money to market it. It's hard to break through all the static in that situation and many companies tend to get lost in the crowd. During times of recession, on the other hand, persistence really pays off. More than one report points to the fact that clever and consistent advertising during the Great Depression helped to boost the long term vitality of brands such as Fortune Magazine, Time Magazine, The New York Times, Revlon, Purina (yes, the pet food brand), La-Z-Boy, Texas Instruments, Hewlett-Packard, Motorola, Kraft Foods... the list goes on and on.
Granted, we haven't hit Great Depression lows yet, but it sure would be nice to avoid it if possible. And according to one study, advertising during the recession of 1985 boosted sales by some 200% in the post-recession economy over those who did not advertise. I guess what we're saying is that advertising is by no means an expendable luxury — it's a critical investment.
So there it is. Some food for thought — or rather, some thoughts for success.
Need more convincing? Here's a list of sources:
http://www.allbusiness.com/marketing-advertising/advertising/260415-1.html
http://www.adrants.com/2009/03/smart-marketers-advertise-during-a.php
http://www.mpdailyfix.com/2008/11/statistics_on_advertising_duri.html
http://blogs.bnet.com/intercom/?p=1558
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