The stock market free falls, the economy takes a big dip, consumer confidence follows suit – what’s a company to do? ADVERTISE. For most CFOs, and management teams, this seems counterintuitive. After all, marketing is expendable, isn’t it? The answer is unequivocally no.
Here’s why a brand should invest in marketing and advertising to weather an economic storm or crisis. Research shows, time and time again, that brands that advertise during downturns, recessions or crises grow, while their non-ad-spending counterparts do not. Advertising during these dark spots not only increases sales but increases profits too and has lasting effects.
A few things are at play here. The obvious one is that there are fewer ads, so your ads will be noticed more and enjoy better name retention. A second is that a downturn puts pressure on advertising rates, which creates a buyer’s market for advertisers, enabling better ad buys. A third is that you’re creating greater brand awareness, allowing your brand to stay top-of-mind when things return to normal.
Naturally, you need to be sensitive to how your audience(s) is being affected during uncertain or troubled times, but good brands understand this.
Hopefully, your brand can learn and prosper, from valuable lessons of the past. If you need some new ideas or want someone to evaluate your current advertising plans, contact Tag now.