Advertising in a Recession

Posted On 01/27/2009 15:56:00 by grapevine
Advertise In a Recession? Are You Crazy?

As it turns out you're crazy not to advertise in a recession. Many studies over the years (even going back to the Great Depression) have shown that investing in marketing during rough economic times is actually more effective than when times are good. This doesn't seem to make sense until you think through the logic.

During a recession most businesses decide to cut expenses in order to weather the storm. And one of the first expense items to take a hit is advertising and marketing. To savvy marketers and business owners this is an opportunity. There's less competition vying for customer's attention, so those advertisers who can maintain or even increase their marketing investment will find they have a much greater impact.

Here's some studies that show how companies can actually increase market share by doing what their competition won't- advertise during a recession:

McGraw-Hill Research analyzed the performance of 600 companies from 1980 through 1985, including the deep recession of 1981-82. The analysis showed that firms that maintained or increased ad spending during the recession enjoyed significantly higher sales growth, both during the recession and for three years after it compared to those that eliminated or decreased their advertising investment. By 1985, sales of companies that were aggressive advertisers during the recession had risen 256 percent over those that decreased their marketing investment.

Another report by Coopers & Lybrand and Business Science International concluded that "businesses that maintain marketing programs during a recession outperform companies that rely on cost-cutting measures. A strong marketing program enables a firm to solidify its customer base, take business away from competitors and position itself for growth during the recovery."

In difficult economic times it pays to remain visible. Many of your competitors will choose to cut advertising and become invisible!

The question is, where do you advertise? The latest surveys show 90% of buyers use the internent to search for a home, car, service, etc, so therefore 90% of your budget should be on-line, and only 10 % should be print. 

The Grapevine Websites are a very cost efficient way to market your products or service.

Tags: Advertising Recession Promote Market

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