Moving Forward

Market Turmoil.  Unemployment. Recession.  Issues of the new year that are on everybody’s mind.  A business person’s instinct is to protect profits, spend less and, yes, cut advertising as an expense when times get tough.  It’s a strategy that is much like being in a race and saving money by not buying fuel to get to the finish line.

The concept of cutting back on advertising to achieve the short-term result of “bolstering” a bottom line misses the long-term opportunity to take away market share from competitors who have adopted the “turn off the faucet” strategy.

Studies have shown that advertisers who cut marketing expense during a recession lose sales, lose market share and take longer to recuperate losses than those who maintain levels of spending.  It’s less expensive to maintain than to rebuild.   The savvy business person can actually gain an advantage during a recession since the overall competitive environment tends to be weaker.  Studies also show that companies who continued to advertise during a “down” economy, averaged high growth both during and following a recession.

But it can’t take place with a “business as usual” attitude.  That’s where the advice and smart thinking of a strong agency partner can be your “secret weapon”.  An independent professional counsel can help you sustain awareness so the consumer keeps you “top of mind”.  An agency can also keep you focused on marketing efficiently to enhance your market share, not just sales volume.  Concentrate a persuasive message with frequency in an impactful environment.  It’s a positive strategy in a negative situation that an advertising agency can help you craft.

In tough times, increased spending pays off.  When advertising stops, the customer forgets.