Sounds Risky doesn’t it? But in fact, advertising in a bad economy makes good business sense! American Business press analyzed 143 companies during the 1974/75 downturn in our economy and found that companies that advertised during the recession had the highest growth in sales and net income during the two years and the two years following the recession. They also proved that companies that cut advertising had the lowest sales and net income increases during the same study peri0ds.
McGraw-Hill also found similar results when they studied companies’ advertising during the 1981/82 recession. They 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 275% increase in their sales!!!
Companies that advertise during a down economy must adapt their advertising to fit the message that the buying public wants to hear. Auto manufacturers are now stressing fuel economy instead of performance or the size of their vehicles. Restaurants are now stressing their low cost menu items and take-out options to help consumers keep watch on their monthly food expenditures.
An advertising message must concentrate on the company’s core values and benefits. Companies must focus on their benefits that they deliver to the consumer and REWORK THIER BRANDING MESSAGE TO DELIVER A NEED AND NOT A WANT. Home improvement companies must focus on how their products will save money in the long run for the buyers, and how their products will add value to a house when the economy begins to come back.
The average recession over the past 100 years has lasted around 11 months. Keep your message strong and consistent, and focus on your core values, and customers will see your business as someone who has weathered the storm. They’ll be confident in doing business with your company when they become ready to buy…
Posted by Maurice Phillips as Advertising
http://www.heardadvertising.com, “Advertising in a Bad Economy”
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