Why advertise in a down economy?

OK, fine. Nobody likes the “R” word. But like it or not, we are smack dab in the middle of a recession. The question we all face is what do we do about it? You want to cut costs, but where? For some companies the decision is easy, the first cut they make is advertising. But you are not so sure.

I can think of eight solid reasons to continue advertising during a recession. They might even justify boosting your budget, but only if you are prepared to come out the other end as a market leader!

Aggressive advertising can help you capture market share. Act now while your weaker competitors are slashing ad budgets and waiting out the storm.

Your sales team needs help, now more than ever. While existing customers are cutting orders, advertising is needed to identify new prospects. 

Memories are short. Buyers can easily forget your name. If a competitor continues to advertise, he is the one most likely to be called upon and remembered.

Advertising is an important part of your sales team. You aren’t going to eliminate your sales staff just because business is slow. Why would you cut off the most important element of sales support?

It takes time to make a sale. Advertising has a cumulative effect. If you cut your ads today, you’ll lose the ground you’ve gained. Continuity is the single most important factor in effective advertising.

Good advertising generates sales. If you cut your advertising, the sales slump you experience may be self-inflicted.

There is more to advertising than immediate sales. It is an inexpensive way to keep in touch with customers, to let them know that you are alive and well in spite of the slow-down.

New conditions create new needs. The recession may be creating new prospects for your products or services and advertising will help you find them.

Also, here’s a post with questions the CEO of a midsize company should ask before cutting the marketing budget.