Whenever people hear ‘recession’, they envision the end of the world. Market values crashing, stock exchanges collapsing, businesses dying –it is not a new dilemma anymore. By definition, a recession is two consecutive quarters of decreasing GDP, and we’ve had nine of them since World War II –ten if you count America’s recent economic meltdown.
Obviously, this is not our first time. We’ve been hit by the recession wave roughly once every six years. Ironically, we should be used to them by now. Shouldn’t we know how to deal with them? Some businesses do – those who realize that growth occurs during recessions, and, if they exploit on that fact, they flourish way better then they were at the beginning.
Needless to say that the common corporate belt-buckle needs tightening during harsh economic times, Budget is the keyword to survival but why immediately slash at your advertising and marketing cost? Consider adjusting operating hours, boosting efficiency and reforming production and operation, which can benefit most companies. In times of economic distress, online ad spending is essential because it is not only targeted and competition is less fierce than in conventional media but also affordable.
Marketing class 101 – teaches you that your advertising budget profits you in the consumer environment. There are many companies that invest in grabbing the customer’s attention. During a recession, when many companies pull back their advertising, you get a chance in increasing the effect of your ad money by advertising online. One man’s loss is another’s gain; there is no reason to cut down on online marketing then.
Mr. Silverman, of Deliotte’s annual holiday survey, advises that “Retailers should be viewing [online investments] as a way to capture lost sales and prevent them from going to a competitor. I’m not going to say the growth in online is all additive – a lot of it is shift”. Sounds like a blessing if one chooses not to cutback.
Here are some helpful tips to assist you small (or medium sized) businesses endure recessionary times:
1. Don’t cut your ad budget; increase it. Let your competitors cut ad spending so that you benefit from that.
2. Shift some ad spending from conventional to online – especially approaching the holiday season. You’ll be surprised with the responses.
3. Your customers are nervous about spending; adjust your marketing campaign to alleviate their fear.
4. Lower rates and ad promos from hurting conventional media companies provide great opportunity.
5. Promote online; sponsored events are extremely easy to promote online through social media.
6. Don’t “cheapen” your advertising by trying to save on creative or production costs. Your customers will notice and worry about quality.
You don’t need to kill your business. Remember you are the master of your own progress Choose to advertise online; it is after all the wisest way.
