At webmarkets, we’re all about the ‘Work Smarter, Not Harder’ mentality. That’s why we’re here to share with your our greatest tip of advice - it all begins with continued advertising.
"When times are good you should advertise, when times are bad you MUST advertise." - Ben Zimmerman, President at Media Design Group.
Why Advertising is Always Essential
According to Forbes, increasing advertising spend during recessions has repeatedly proven to increase sales and market share during the recession and afterward.
Don’t just take it from the professionals; here are a couple of success stories from past down markets from some of America’s most powerful businesses:
- Pizza Hut sales increased by 61% in the 1990-91 recession when they increased their advertising and promotional budget.
- Taco Bell sales grew by 40% during the same recession, while McDonald’s decided to drop its advertising, and sales declined by 28%.
- In 2009, during the "Great Recession,” Amazon continued to innovate, introducing a lower-cost alternative and new products, resulting in a 28% sales increase.
While a recession may cause a decrease in consumer spending, for the time being, it is an excellent opportunity to elevate your brand, maintain ad budget, and boost sales and market share.
4 Reasons to Advertise During a Market Crash
If those examples aren't enough, here are four reasons to advertise during a slowdown:
- "Noise Level": While your competitors may be holding back on advertising, this is your time to make noise. Their brand recognition may decline with their limited advertising, allowing you to take their place. Take advantage of using this time online to re-position your brand or introduce a new product or service.
- Stability: Staying active online has the ability to project a sense of stability for your company during trying times. It also allows you to create those meaningful moments online with your audience, which will enable them to be a part of your story during trying times.
- The Cost: The cost of advertising drops during recessions, creating a "buyer's market.” It’s been proven that direct mail increases during recessions, probably for its ability to provide significant short-term sales growth. Utilize the low-cost and open market to create a recognizable brand for your products or services.
- "Share of Voice": In other words staying active online through advertising has the potential to increase your market share, leading to an increase in profits. While businesses are cutting back, they’re often losing their front-of-mind position with consumers. Continuing those online conversations, more specifically ads, will keep your businesses at the forefront of your desired consumers’ minds.
At webmarkets, We Understand the Impact of Advertising
Together, we can work to maintain your online advertising to increase short and long-term sales. Allow our team of advertising experts to lead you to success with one-of-a-kind campaigns and custom advertisements.
Let’s talk strategy. Contact us.