Companies that advertise during a down economy must concentrate on the company’s core services and benefit offers. Businesses should rework their branding message to deliver a need, not a want. By focusing on the core values, your customers will see your business as one which has weathered the storm because of a solid foundation and good business practices, and they’ll be confident in doing business with you.
Many companies are tempted to cut their advertising budget during a recession, but don’t be fooled by short sighted bottom lines. Companies that cut advertising have the lowest sales and smallest net income. Actually, advertising in a bad economy makes good business sense. There may not be as many dollars out there, but companies can expand their client base and prepare for a solid return. This is especially true if competitors cut back on their marketing dollars.
Many studies have found that companies that advertise during the recession have the highest growth in sales and net income during the two years of the study and the two years following the recession. McGraw-Hill researchers found that companies that cut advertising increased their sales by only 19% following the recession, while companies that continued to advertise during the recession experienced a 275% increase in their sales.
Not advertising in a down economy is an even larger risk than cutting back. Continuing the investment in advertising and marketing during a recession will increase a brand’s market share and allow for a strong return when the economic climate stabilizes.