Advertising During a Recession. REALLY?

Recession. The mere mention of the word can cause business owners to clamp down on their wallets, slash their budgets, and look at any way they can to cut costs. For many, the first impulse is to reduce their advertising expenditures, an expense that may appear to be a luxury.

Not so fast. Let’s list just a few benefits of advertising:
• It creates awareness of your company and brand.
• It generates added business from current customers.
• It brings in new leads and prospects.
• It helps to create immediate sales.

What better way to come out on top during a recession than to increase your advertising while others may be doing just the opposite. This gives you the opportunity not only dominate your market, but to create brand awareness and influence without the competition bogging you down. Research shows that companies maintaining or increasing advertising during periods of economic slowdown will boost their market share, and some will even see an increase in sales over their competitors who decreased their advertising.

Harvard Business School professor John A. Quelch agrees. In a recent paper on the Harvard Business Review’s Web site entitled Marketing Your Way Through a Recession, Quelch writes, “Brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”

The other benefit lies in familiarity. Consumers like products and services that they are familiar with and trust. Having a consistent presence in the advertising marketplace solidifies your brand as one that’s stable in the industry, and gives consumers confidence that your business is able to weather the recession storm.

Finally, make sure that your advertising efforts are guided by a marketing agency or professional that you know and trust. Having the guidance of someone who is truly looking out for your best interest will help create a partnership that will greatly enhance your chances of profitability and business success.