To Be Or Not To Be: Advertising During a Recession
With expenses rising and financial security becoming tenuous, is it smart to continue marketing your brand?
It goes without saying that the current climate is creating a lot of financial uncertainty. And, therefore, a lot of business owners are wondering how to best direct their spending to tackle times of hardship.
A common reflex for businesses seems to be to cut their marketing budgets. On the surface, this is an understandable reaction. After all, it feels safe to assume that consumers won’t have a lot to spend on your products or services. However, the past has taught us that soldiering on with your
marketing strategy is the best thing you can do to reap the benefits.
Why Continue Marketing?
It can feel like a big risk to continue to invest in your marketing strategy in times of uncertainty, however there are many reasons as to why it may just save your brand:
Competitive Edge
By remaining present while your competitors drop back, you’ll find yourself at an opportune time to be able to reposition your brand, or even introduce new products. Take advantage of the lack of background noise to really get your message out there.
Staying Relevant
By keeping your marketing strong, you can continue to grow and change as marketing always does. Take Netflix as an example: they kept marketing a new medium for home cinema through the Great Recession in 2008–and they changed home viewing forever. Be a Netflix, and not a Blockbuster.
Cheaper Advertising
One of the few upsides to a recession is that the cost of advertising actually drops. Studies into this have shown that direct mail–usually considered to be more costly–increases during recessions, enabling greater short-term growth.
These are just a few reasons to maintain a strong
marketing strategy during this kind of time. But, we’re aware that this may sound easier said than done. Don’t panic, we’ve got a carefully-considered action plan to help you through.
How do I Keep Marketing?
In such unpredictable times, it may feel tempting to change your marketing strategy quite
drastically. However, history has shown that readjusting the focus is all that’s needed to remain successful:
Target your ads more carefully
Times like this are perfect for taking a step back and analysing your consumers. Are you reaching your target demographic? Or, are you finding success with an unexpected audience? Whoever it may be, really hone in on them with your advertising. This brings us to the next step:
Focus on maintaining brand loyalty
It’s more important than ever to keep customers coming back at a time like this, so don’t neglect them for the sake of drumming up new business. A great way to maintain those relationships could be through loyalty programs or email marketing.
Adapt your messaging to the climate
By offering short-term price incentives or special promotions to accommodate those who don’t have a lot to spend, you can still boost sales and grow your business during a financially-trying time. By reading the room and showing your customers that you care, you’ll never go wrong.
Sell the benefits of your brand
It’s always worth reminding potential customers of your brand’s value: what sets you apart? How can you help them? Why must they act now? As we mentioned earlier, it’s never a bad idea to take advantage of your quieter competitors during a recession.
These methods are based on what we’ve seen work in the past–proving that those who bravely continue with their marketing strategy don’t just survive recessions. They go on to thrive.
BNI’s founder Dr. Ivan Minser lives to tell us such tales–when asked how he kept his business growing during times like these, he famously replied,
“I refuse to participate in the recession!”
Digity have provided outstanding digital marketing services for over a decade. To see how we can assist you,
visit our website today.
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