Finding the Good During an Economic Slowdown
We have all seen it before. The first thing to be cut in a down economy is marketing. It's the easiest thing to do and generally doesn’t require l
aying off employees or reducing production. It hearkens back to the days of when marketing couldn't show return on investment (ROI). And even now in the days of data overload, it still tends to be the fallback position. However, research shows that companies that continue to spend on marketing and even increase their spends, fare better during recessions than those that do not.
We agree that tough economic times requires us to take a hard look at our marketing expenditures. We don’t recommend keeping everything business as usual. However, instead of taking a chainsaw to your marketing budget, take a laser. Reduce or suspend tactics that aren’t producing great returns and maintain or increase those areas that provide the greatest ROI. Now is the time to use your data to show the value of marketing.
As we have stated, a lot of companies slam on the marketing brakes during a down economy. This fact alone is good reason to stay the course and keep your marketing engine running.
Here are some benefits to staying in the marketing game:
- Less Noise: With a lot of your competition slowing or stopping their advertising efforts there is less noise for you to shout over.
- Better deals: As others stop advertising, more media inventory becomes available and is often sold at a reduced price.
- Bigger Share of Voice: Again, within your market, if you are one of the few still out there with marketing dollars, you can receive a larger share of voice for each dollar spent.
- Show strength not weakness: During uncertain times, if you go dark with your marketing customers can see that as a sign of weakness or fragility. Show them that you are strong and open for business.
It's not always about spending big dollars. With the increased attention to digital and online properties, there are lower cost solutions you can utilize that still provide great data and the opportunity to show ROI.