Thrive & Survive: Why It's a Good Idea to Invest in Marketing Now
“When times are good you should advertise. When times are bad you must advertise.”
Many studies show that businesses that invest in marketing and promotion during tough times are more successful in the long term.
A market downturn can be scary for business owners. But it is also an opportunity to reconnect with customers, innovate and position your business for the future.
Improve sales and market share
While it may be tempting to cut back on marketing and advertising when the economy is in a slump, research shows brands that maintain their marketing budgets or change their messaging can improve sales and market share.
One US study found that of 600 companies, those that increased advertising expenditure during the 1981-1982 recession averaged significantly higher sales growth during the recession and in the following three years compared with those that eliminated or decreased advertising.
A 2008 study found that up to 60% of brands that went ‘dark’ and stopped advertising during a downturn suffered a 28% decrease in brand image.
Even Forbes magazine has reported on downturns as pivotal moments for brands to win back market share:
- Tech giant Amazon grew its sales by 29% during the “great recession” of 2007-2009 by introducing innovative new products such as Kindle.
- Pizza Hut and Taco Bell took advantage of a drop in advertising spend by McDonald’s during the 1991 recession, investing in their own advertising. The result was in an increase of Pizza Hut sales by 61% and Taco Bell sales by 40% while McDonald’s sales dropped by 28%.
All around us, we are seeing incredible examples of businesses that are pivoting and quickly adapting to our strange new world, bringing customers with them on the journey and attracting new customers along the way.
Why advertise during a downturn?
Now is an ideal time to consolidate your offer, take advantage of great deals on advertising and printing and build your customer base.
- Smaller players have a unique opportunity to win back market share
- Capitalise on cheaper rates for radio, print advertising and printing
- The decrease in noise offers opportunities for repositioning or new product launches
- Position your business strongly for future growth
- Build brand awareness
- Increase engagement and grow customer loyalty.
Confidence is contagious
We recently saw a headline in a chamber of commerce email saying “confidence is contagious”.
If we look beyond what is happening now to the future, businesses have every reason to be confident that things will get better. History tells us that after every downturn is an upturn.
By putting in place the building blocks today for tomorrow, chances are your business will come out stronger, more resilient and better than before.
Shout it from the rooftops!
Now, more than ever businesses need to support each other. Please get in touch if your business has a new offer or something newsworthy to share so we can share it with our social networks.