Planning around setbacks, including turbulent economic conditions, is part of running a successful business. Making decisions about where to cut costs is never easy, but here’s a little known fact: advertising is not something you’ll want to miss out on during difficult times. Sure, many businesses do sacrifice advertising during a challenging economy. But research shows that this actually hurts businesses in the long run. Let’s take a look at why advertising is important for both consumers and businesses when faced with adversity.
Customers’ Needs Come First
If the economy is rough for businesses, think about how it is for consumers. That’s why it’s important to provide more authentic and helpful information and less aggressive sales messaging. Helpful messaging lets customers know that businesses are empathizing with them throughout the economic landscape. Being considerate and descriptive of how products and services are helpful to audiences during an uncertain economic climate is the key to navigating a hard financial time.
How Ads Help From A Business Standpoint
Of course every company cares about its customers, but what is there to gain from pouring money into advertising during hard times? A lot, studies have shown. Research indicates that it’s best to continue marketing and even increase investments because it helps long-term ROI. One analysis (by Kantar Millward Brown) from the 2008 recession showed that 60% of brands that stopped or slowed marketing saw the brand use decrease 24% and the image decrease by 28%. On the flip side, a McGraw-Hill Research study examined 600 companies from 1980 to 1985 and found that businesses that maintained or increased their marketing investments during the recession saw significantly higher sales once the economy recovered. In fact, those that advertised aggressively had sales 256% higher than those that stopped. One more perk for businesses? When demand for advertisements drops, so does the price. This gives businesses the chance to advertise more and face less competition.
Be Loud While Competition Is Quiet
A rough economic period may not last forever, but the long-term growth from continued advertising during it just might. At the Giovatto Agency, we’ve served our clients through highs and lows for 35 years and counting. We deliver results that are within your budget and pay off in the long run. Want to keep your advertising up and running all the time? Yeah, we thought so. Contact us today for your free consultation!