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Don’t Cut Ad Budgets

Marketing News
Here is a fabulous article written by Wharton School of Business titled:  WHEN THE GOING GETS TOUGH, THE TOUGH DON’T SKIMP ON THEIR AD BUDGETS.  It was published on 11/26/08.
Here are a few bullet points from that article:
  • Advertising budgets often appear to be a dispensable luxury in the struggle to survive
  • When companies slash advertising in a downturn, they leave empty space in consumer’s minds for aggressive marketers to make strong inroads
  • Today’s economy “provides an unusual opportunity to differentiate yourself and stand out from the crowd”
  • If your company has something to say that is relevant in this environment, it’s going to be more efficient to say it now than to say it in better times
  • History shows companies that advertised aggressively during the recession had sales 256% higher than those that did not continue to advertise
  • The key is to craft messages that reflect the times (try to empower consumers and help them think of ways to be in control in a world where they feel out of control)
  • Certainly people are going to be spending less in this downturn, but they will spend something
  • Luxury businesses should take an approach of appealing more to emotion, emphasizing the need for some emotional release or comfort in difficult times
  • Emphasize long-term value – for years to come
  • The biggest lesson is that recessions come and go so you have to be careful how you react because the downturn is not going to be forever
  • If companies cut deeply into advertising and communications in a down period, the cost to regain share of voice in the market once the economy turns around may cost 4 – 5 times as much as the cuts saved
  • You must keep a balance in times like this – don’t go dark when customers and consumers need you because they need you as much as you need them
  • Position your brand as an ally to consumers in tough times
For the full article, go to: