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, eMarketer.com 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: