Even when the economy is going down the drain, you can’t afford to can your advertising efforts.
There seems to be very little argument that our economy is experiencing a downturn that looks like it will be with us for a while. In the face of economic uncertainty, it can be very tempting to cut back on advertising. Many companies give into this temptation in times like these. Budgets for online advertising, website improvements, and sales staffs are often cut back and marketing improvements are often postponed. There are many reasons why this reaction to an economic downturn may be a critical and costly error to many businesses.
Companies that remain committed to advertising during a sluggish economy usually bounce back much quicker when the economy is on the upswing again. Advertising is not simply for the immediate future, but is an investment for many months or even years into the future.
In an economic slowdown, people do not stop purchasing goods and services. Potential customers do tend to be more selective in these times though. When buyers are more selective, a strategy to carefully distinguish your company from the competition is more important than ever.
Another thing to consider is that many companies will, in fact, cut back on advertising. This, in theory, should allow more aggressive advertisers to experience bargain-advertising rates that will make the money spent on advertising extremely efficient.
Sales and advertising are closely related to each other. If advertising is scaled back, then sales will decrease, and the perceived savings that were supposed to be gained by the advertising dollar cutbacks will be lost. Usually, much more harm is done to the bottom line than the advertising cutbacks would have appeared to save in the first place.
During any lengthy economic slowdown, a business must find ways to be as efficient as possible. Doing otherwise would be foolhardy. The advertising budget should be one of the last possible areas to cut. Everything else the business does today and in the future depends on advertising. The old adage is as true as ever. In business,nothing happens until somebody sells something. When the economy is booming, advertising is a very good idea. During an economic downturn, maintaining a healthy advertising budget is a necessity.
Latest posts by (see all)
- Outperform Your Competitor: 3 Solid Strategies For Your Website - March 11, 2020
- How To Drive Conversions With Content - February 18, 2020
- Top 8 Web Design Trends to Nail It in 2020 - January 20, 2020