If Everyone Let Their Advertising Jump off a Cliff, Would you Follow?

Is the economy really as bad as we say it is? Americans haven’t stopped spending money, we’re just spending less on nonessential things.

If you’re in advertising, 2009 means:

1. Understanding that you CANNOT stop advertising if you want to make it through the downturn
2. Creating marketing messages that resound with your consumer’s fears

Don’t believe me that advertising is essential? Consider this report from Knowledge@Wharton:

Research shows that companies that consistently advertise even during recessions perform better in the long run. A McGraw-Hill Research study looking at 600 companies from 1980 to 1985 found that those businesses which chose to maintain or raise their level of advertising expenditures during the 1981 and 1982 recession had significantly higher sales after the economy recovered. Specifically, companies that advertised aggressively during the recession had sales 256% higher than those that did not continue to advertise.

Now is the perfect time to advertise!

Media prices have been lowered and you’ll stand out above your competitors and show consumers that you are strong enough to advertise and weather this downturn. The key is to craft messages that reflect the times and show how your service or product is worth the consumer’s dollars; advertising is an investment, not an extraneous expense. We still need food, transportation, shelter, things to put in our homes, etc… As Americans it is ingrained in our souls to consume. I doubt any American has completely cut out buying things they “don’t need” to save money.  Have they slimmed down their spending? Absolutely. Have they cut out non-essential expenses altogether? Absolutely not.

It’s not surprising that Barack Obama said the U.S. economy “will take longer than any of us would like [to recover]—years. It will get worse before it gets better.” As a political figure it is imperative to his credibility to say things will get worse before they get better; when the economy takes an early swing upward in the next year he’ll gain an extra gold star as our new president.

Your goal for the next year is to alter your marketing messages to show sensitivity to rising anxiety and fear of the unknown. Ads should instill a sense of control, value, and positive emotions to the consumer. Americans want to feel good and want what they want now; marketers should run with this overall theme, because it will never fail them with American consumers.

Bottom line, this isn’t high school, so don’t stop advertising just because your competitor stops advertising. Make your business shine in this gloomy time. Stand above your competitors by maintaining or upping your marketing budget. If you have a strong service or product now is the time to prove it through the rough times.

We will never stop spending, but where we spend those dollars is the bigger question.

Tagged as: Advertising, Advertising in a recession, Budget, Recession