Should we spend money on advertising during a recession?
In the current economic climate do you stick, twist or ditch your Marketing/Advertising budget? When there is an economic downturn in business it makes perfect sense to cut back where prudent…….. Or does it? Well many research studies show that companies who advertise strongly during a recession experience an immediate increase in their revenue and even stronger growth once the recession ends.If you spend more you will make more: A McGraw-Hill study of 600 businesses found that those who maintained or increased their advertising spend saw higher sales growth during a recession and in the years following. In fact, the study found those who maintained or increased their Marketing budgets experienced a 256% increase in sales compared to those who cut their budgets. Another study found businesses who advertised during a recession saw their market share increase 2.5 times.
It is a mistake to think that waiting until a recession is over before you resume advertising is the smart thing to do. Consider this; a third study revealed 80% of the businesses who waited until a post-recession economic recovery to advertise, saw a near 0% increase in market share, which of course is obvious since everyone else began advertising again.