Should you advertise during a recessionary period?
I think this came to me from News Radio 1080 (Dallas/Fort Worth) back in 2004. But it still makes sense. Businesses that advertise in a downturn do better in the downturn than their competitors who don’t and do way better after the downturn because they didn’t lose the ground their competitors did. Check it out.
Fact: In a McGraw-Hill Research analysis of 600 different companies: Business to business firms that maintained or increased their advertising expenditures during the 1981-82 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. 3-years after the recession, advertisers had risen 256% over those that didn’t keep up their advertising.
Fact: Analysis of the 1990-91 recession, Coopers & Lybrand research found that better performing businesses focused on a strong marketing program enabling them to solidify their customer base, take business away from less aggressive competitors, and position themselves for future growth during the recovery.
Fact: A recessionary market can provide an opportunity for businesses to build a greater share of market through aggressive advertising – Strategic Planning Institute of Cambridge, MA
Fact: Advertising aggressively during recessions not only increases sales but increases profits (has held true for all post-World War II recessions studied by American business press starting in 1949)
Fact: Advertising can give a company a stable image in a chaotic environment. The more familiar people become with a brand, the more favorable they feel toward it, and the more likely they are to buy it. People don’t like doing business with strangers.
Fact: History shows that companies that fare the best during hard economic times do so by continuing to communicate with customers and build their brands regardless of economic conditions
Fact: When times are good, you should advertise. When times are bad, you Must advertise. It does pay to advertise during a recession.