With experts predicting a recession, companies are entering survival mode. Business owners are going to their budget and slashing expenses wherever possible.
Typically, ad spending is one of the first shelved expenditures. But before striking a red line through your marketing dollars, think again. Decades of data indicate considerable benefits and a higher return for marketing dollars spent during an economic slowdown.
New Space to Fill
Competitors cutting back on their own ad spending means new spaces (for you) to fill. As the noise level in your product category or industry drops, you have an opportunity to reposition your brand or introduce a new product. The ad space is less cluttered, and often placement prices drop as well.
Show consumers that you aren’t going anywhere. Continued messaging through a recession demonstrates that the products and services your customers love — the defining reason they patronize your business instead of others — aren’t in jeopardy.
Additionally, your wherewithal presents an opportunity to gain more referrals and convert customers from a competitor, as your business exhibits lasting power where another is not. No one wants to invest in a service that can disappear at any moment.
(Actually) Better for Your Budget
When you’re out of sight, you’re out of mind. Consumers have short memories and going idle means they’ll forget you quickly. Any period of silence means losing
“top-of-mind” market share, forcing you to start from the bottom and ultimately spend more just to reach previous benchmarks. If you must cut, we recommend transitioning to a “low-hum” campaign that keeps your brand visible.
While the natural inclination is cutting advertising spending during a recession, companies that stay the course reap the rewards of a quiet market, elevated brand image and long-term cost-effectiveness. It’s possible to address your marketing budget without eliminating it completely. Ask an outside agency to audit your current practices and identify trimmable areas. In fact, R2R often performs such audits, finding ways to save our clients on their bottom-line while optimizing visibility and reach.
We’ll leave you this week with a classic branding adage:
“When times are good you should advertise. When times are bad you must advertise.”