The current economic state is bleak and companies small and large are struggling. Time and time again, I have heard owners of companies tell me they are cutting their marketing/advertising budgets, which makes me cringe.

A down economy or recession is NOT a time to make cutbacks to advertising, and actually, the reverse is true. Researchers from Oregon State University and Western Oregon University studied data from five recessionary periods since 1971, sampling data from 3000 firms listed on the public stock exchange. Their findings,

“Firms that are able to increase their advertising during recessions are likely to have stronger future earnings.”

I guess that quote would make the 6th reason to advertise in a recession– more future sales. Here are some others that gets your company to achieve the ultimate goal, higher profits.

Reputation

When you market during a bad economy, people see your brand and make the assumption business is good for your company. If you are able to afford to market, then the thought process for consumers, and your  competition, is that you are doing something right–your product and service must be worth it.

People are looking for deals and coupons

If you look at the graph below, I have given you a snapshot of the searched terms of coupons (blue) and deals (red) and how often they have been searched since 2007. As you can tell, both terms have approximately doubled in the amount of times they are searched on any given day. Consumers are looking for deals and are turning to the internet to find them. When marketing, be cognizant of this fact and include promotions in your advertising material.

Don’t follow in your competition’s footsteps

If you are thinking about cutting back on marketing, then so is your competition. Do you really want to do what your competition is doing? Be innovative and market when they are not which leads to….

Increase market share

Marketing in a recession when others will not will increase your market share during the down times. When the economy rebounds (which it will), you will be in a much better position than your competitors.

Did you know that in 1990 Reebok and Nike were virtually the same in sales? During the 1990-91 recession, Nike tripled its advertising budget while Reebok cut back. Do I need to explain what happened? Well, when we emerged out of the recession, Nike’s profits were 9 times higher than they were going in–Reebok has been eating Nike’s dust ever since.

Internet provides cost-effective advertising

Unlike past recessions, the internet provides the ability to use the most cost-effective advertising. Companies are able to track their marketing and see real-time data on their results. When done right, and with the right people in charge, companies are able to get the maximum ROI.

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