Advertising aggressively in a recession enables a firm to solidify its customer base, take business away from less aggressive competitors, and position itself for future growth during the recovery. It can skillfully reposition a product to take advantage of new purchasing concerns, give the image of corporate stability within a chaotic business environment, and give an advertiser the chance to dominate the advertising media.
History has proven companies that maintain or increase their advertising investments in periods of economic downturns increase their sales and share of market, both during and after the downturn.
The Value of Advertising
When the economy constricts everyone pulls those purse strings tight. The company that is putting their message out there builds brand and the perception that the company is powerful because they have the resources to advertise when others do not. If during an economic downturn you maintain a strong advertising presence while your competitor cuts his budget, you will automatically increase your “Share of Mind.”
According to American Business Media advertising reinforces the power of branding and provides a show of stability.
- Here are the facts
- Advertising during a recession protects market position.
- Maintaining “Share of Mind” costs much less than rebuilding it later on.
- Consistant advertising sustains brand recognition.
- Recessions reward the aggressive and penalize the timid.
- When times are good, you should advertise; when times are bad, you must.
- Recession advertising should be regarded as a driver of profits, not a drain
