Posts Tagged ‘consumer spending’

Take Advantage of Some Downtime

June 4, 2009

A lot of companies are in a difficult financial position this year and when choosing where to make money-saving cuts, one of the first things to go is marketing and advertising. I’ve always told clients to think about this in a different way – rather than cutting your marketing budget during a downturn, take advantage of the limited competition and make a splash with customers. While they may not be spending right now, seeing advertising from you will reinforce their belief that you are a strong, vital organization. Plus, people will remember your name when their wallets start to fill up again.

Today, posted an article supporting this argument with some research:

  • Fifty-six percent of Internet users who noticed a decline in ads from a retailer saw it as a sign that the store was struggling—15% thought the store would go bust, and soon.
  • On the other hand, frequent retail ads led respondents to feel the stores were committed to doing business, being competitive and—in some cases—healthy. (Ad Overkill May Not Be a Bad Thing During Tough Times by eMarketer, June 2009)

EDIT June 5, 2009 – Just received an Ad-ology report confirming the data above and adding some interesting points about consumer spending habits now versus one year ago:

Ad-ology Report - Reduced Advertising During Recession Negatively Impacts Consumer Perception