Let’s be honest, times are tough right now. With the uncertainty of COVID-19’s end date, there is no telling what the final impact to the global economy will look like. For small businesses, this could mean some hard times ahead.
In this article, we are going to look at why it is important to keep marketing efforts up while the economy is down. We will also look at the importance of advertising online and how it is crucial in today’s environment.
“When times are good you should advertise, when times are bad you MUST advertise” - Ocreative
McGraw-Hill Research did a study on companies in the 1981-1982 recession that looked at 16 different industries that were relatively even in sales in 1980. They divided the companies into four categories based on when they cut their advertising spending during and after the recession:
- Cut advertising in the first year
- Kept adverting for the first year, but cut it in the second
- Cut adverting in the first year, but kept it in the second
- Kept advertising all the way through the recession
The researched proved that by 1985, the companies that kept advertising all the way through came out 256% higher than the rest.
Proving the Study
So, how does this work? Is there really opportunity to advertise your brand while the economy is tanking? Here are a few reasons why this study proved to be true.
- So much space. While advertising is down, opportunities will open up for your brand to take more control of your market. This will not only help right now, but also impact the longevity of your brand.
- Your advertising dollars are going to go a little further than they did before. With less companies advertising, the cost of ad placements will tend go down.
- You will also give the perception to your customers that through this tough time, your company is still strong and viable.
All of this to say, advertising in a recession is smart for the short and long term health of your company.
Right now, a lot of companies are ramping up their online presence. Ecommerce is one of the only ways a lot companies can currently operate. It is vitally important that your company has a strong digital marketing plan to keep your advertising in the best shape possible.
Here are some practical things you can do to achieve that:
- Update your website. Get ahead of the game and finally get around to updating your website. If you need ecommerce integration or a way to organize pickup, now would also be a great time to start on that.
- Setup a strong digital ad campaign via Google Ads and social media marketing. With your website in place, it’s now time to drive people to your site with digital ads.
- Step up your social media game. The only investment required here is your time. With so many people at home right now, it’s the perfect time to get active on Instagram and Facebook. (Pro tip: Use Canva to make professional looking graphics)
- Partner with a digital agency. An agency, like JH Specialty (shameless plug), can help take a lot of the guess work out of it, and make sure you are using your limited advertising dollars in the best way possible.
We’re in crazy times, but that doesn’t mean your business can’t flourish, or at least stay afloat. With these tips you will not only be able to do that, but also set yourself up for future success when the economy eventually evens out again.