Everyone is feeling the squeeze and the temptation is to cut back, batten down the hatches and wait out the storm. Don’t do it!
Several studies, including one from the august Harvard Business Review, insist that cutting back on marketing and advertising during a recession is a VERY BAD IDEA. But also that the opposite, investing in marketing during tough times can be a VERY GOOD IDEA.
Even when markets are experiencing volatility, it’s vital to calibrate your marketing to meet your customers’ needs, not just turn it off and stick your head in the sand. It can even be a good opportunity to build your brand because not everyone will have the same courage of their convictions. The advertising landscape might be quieter, rates cheaper and so you can get more reach for your budget. People may not be buying instantly, but that just feeds into potentially pent-up demand and you want to be there when the floodgates open (remember our 95%-5% rule).
TOP THOUGHT #8
Manage your marketing budget for maximum effectiveness. Repetition is your friend so reuse existing collateral rather than paying for new (make sure the messaging makes sense). Memory triggers are powerful. Don’t underestimate the message that simply investing in ads sends to customers. Your ability to advertise communicates that you are robust and financially secure, and that you have a quality product.
Read the full 12 ½ principles for Brand and Advertising Effectiveness here.
*https://hbr.org/2020/08/dont-cut-your-marketing-budget-in-a-recession
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