The United States economy shows signs every month of a possible upswing, but not all companies are ready to jump back into the market with reckless abandonment. Many businesses are cautious until they see customers knocking down their door or visiting their website in droves. Hopefully, we will see this stampede of customers starting in 2010, but until then, what are some things that your business an do. How about advertise? Yep, I said traditional marketing, Internet marketing, social media marketing, traditional advertising.
While, I know traditionally marketing and advertising are some of the first things to go when a company is trying to trim it’s budget, but it maybe shouldn’t be that way. Marketing and advertising are often intangible pieces of the business which are psychologically easier to get rid of than the tangible things like employees, equipment, and products. But an article that I read the other day suggests that getting rid of your marketing and advertising budget, might not be the smartest thing that you can do during a recession, it could actually be the dumbest thing that you can do.
The article by Apryl Duncan points out that:
- A McGraw-Hill research study of U.S. recessions from 1980-85 showed that 600 businesses who continued to advertise during the 1981-1982 recession hit a 256-percent growth by 1985 over companies who decreased spending during that same period.
- An American Business Press study during the 1974-1975 recession showed that among 143 companies who advertised during that recession, the businesses saw their highest growth in sales and net income during the recession and two years that followed.
In the article, Duncan also goes on to point out that some of the reasons that marketing and advertising during a recession works is because:
- Your competition will probably stop advertising
- You waste no time in building your brand and standing out
- You can establish a more personal contact with the advertising channels because you have more exclusive access/less competition
- Your business gets a better deal on advertising because of the down economy
- Great discounts can lure bargain-ready new customers into your door or to your website
The great news is now your business has even more advertising options than businesses did in the 1970’s and 1980’s. From search engine optimization (SEO), to Google Adwords, to Facebook, to other forms of Internet Marketing….there is an array of ways to keep your advertising going no matter what the state of the economy.Google+