Why and How to Advertise During a Recession

PR Log (Press Release) – Nov 02, 2009 – Most companies were quick to cut advertising budgets as the recession took hold of the economy. To most people this seemed to be the rational choice. Historically, however, the data indicates that it is better to maintain a strong advertising presence through an economic downturn. Understanding this counter intuitive phenomenon will be helpful to companies who want to weather the storm and come out stronger than they started.

The best reason for any company considering advertising is a simple fact: the competition isn't advertising. When a company stops advertising because of a recession, the market essentially is left open to its competitors. Customers will still need services irrespective of the recession. Your company can be the one the customer chooses because you've made your presence known.

Another positive from advertising through difficult times is creating a long term position for your company. The visibility of your product increases during a recession because of drop in advertising of your competition. Even if consumer spending has dropped, when a consumer does make a purchase your sales will drop if your product is not on their mind. Gaining the customers that pick you through difficult times can turn out to be a benefit in the long run. This underlying trust between consumers and your company is invaluable. There are some very good examples of this i.e. Pepsi rose to prominence during the great depression.

The bad economy can also be helpful in certain aspects. Television advertising, radio advertising, and internet advertising prices have also taken a hit. What better time to advertise than when you spend the least for a time slot! Use this time to make contacts in the advertising industry as well. An Account Executive can be your crucial contact to get your ads in prime placement, negotiate good deals on rates and even get extras thrown in for your ads.

Use this opportunity to talk to your customers directly. Customers react favorably when a company makes available products that help the consumer weather tough times. In the auto industry, companies have come up with great automotive marketing ideas and programs that protect buyers from the impact of losing jobs. These programs have reflected as positive growth in automotive sales leads. An example is Hyundai, who achieved a growth of 4.9% in sales with their assurance plus program. Toyota on the other hand has taken a 36% drop in sales.

In spite of seeing the obvious benefits of advertising through tough times we still face one question. Where do we get the money to sustain an advertising campaign in this economy? This is where we look deeper into budget advertising.

There are a few options available to a small business to advertise without hurting their bottom line. Here’s a look at few of them.

If you have a TV commercial for your product, post it on YouTube. It costs nothing to upload a video and it effectively increases your ad's shelf-life.

Going back to the basics of traditional media is always a prudent choice. Issuing flyers and coupons can definitely help create a buzz. It's a relatively low cost initiative and by implementing programs that offer a discount to those who bring in a flyer can bring in new customers.

Maintaining a website is crucial. Even if you do not engage in selling products online, having a virtual presence goes a long way. People searching for local businesses will notice your competition if they have a website and you don't.

Radio advertising is a good way to reach out to local customers and give you the ability of choosing a target audience. Taking time to find out which stations and the time slots in which a particular set of people will be tuned in will help increase efficiency of your ads.

Co-op advertising is a great cost-effective way to get your name out in the public. The cost is shared by several related businesses. For instance, a bath fitting company can advertise with furniture dealers and reach out to common audiences. This increases exposure with limited need of expenditure.

At the end of the day, a bad economy does not necessarily mean bad business forever and effective advertising does not have to be expensive  There has never been a better time to be innovative and reap the rewards.