2023 is time to conquer new frontiers and achieve business growth. Despite the current economic downturn, it’s time to resolve exhausting politics and push through uncertainty.
When apprehension and indecision start lurking like a disease in the boardrooms again, remember this: Slashing marketing and innovation budgets during a downturn isn’t smart business.
Don’t forget we saw a similar kind of drawback in spending in the 2008 recession. Advertising spends retracted by approximately 13%. For many businesses, 2008 meant closure and refinancing. The savvy few pushed forward. Brave leaders perhaps followed the old adage; “When times are good, you should advertise. When times are bad, you MUST advertise.”
So, why do savvy marketers spend in a Slow Economy?
- With ad spends lower, the share of voice and cut-through of your brand will be stronger.
- A reduction in deman means that advertising prices drop.
- A voice of reassurance goes a long way.
- Brand equity can be quickly destroyed by halting communications.
- Bargain hunters will be receptive to price reductions, sales or promotions you advertise.
In case you still need some convincing, let’s review the ninety’s recession whereby McDonalds decided to drop their advertising spend. Taco Bell and Pizza Hut used this movement in the market to strike and increase their spend and promotions. In fact, Pizza Hut increased their sales by 61% and Taco Bell increase sales by 40%. McDonalds sales sadly declined by 28%. (Forbes Brad Adgate, 2019).
McGraw-Hill Research conducted a study of U.S. recessions from 1980-1985. Out of the 600 business-to-business companies analysed, the ones who continued to advertise during the 1981-1982 recession hit a 256-percent growth by 1985 over their competitors that eliminated or decreased spending.
The argument certainly bares weight enough to consider. Rather than hesitate, I believe that this is a time to double down on creativity and advertise your core products and services with a fresh approach.
For more information on how Digital Willow could help your business get ahead of the competition, contact the team today.