Why continue advertising during a recession?

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images1It is human nature to batton down the hatches and squirrel away any spare cash during a tough economic time however, there have been a whole host of studies and reports that give advice to the contrary in terms of advertising your business.

Further to our post Advertising during a recession – The Kellogg’s way, we have a few more examples for you of companies who have seen success and increased sales by advertising during a recession.

These companies were innovative in their thinking and realised that advertising during slow times would see them at the forefront of their business after the recession.

Companies that kept on advertising

As we have said before, advertising when the going gets tough is the way to shine out and stick in people’s memories. It may not be immediate gain but will ensure constant brand awareness rather than ‘a bit here and a bit there’. Backing me up is a report from McGraw-Hill which found that during the recession of 1989-1991, companies that carried on advertising had higher sales in the two year of and two years after the recession.

A further report from MarketSense showed the following sales increases due to maintaining advertising throughout the recession:

  • Pizza Hut and Taco Bell increased revenue by 61% and 40% respectively while MacDonalds reduced by 28%.
  • Bud Light (16%) and Coors Light (15%) – although maybe that came down to people being  more depressed during that time (sorry, bad joke) 😉
  • Finally, in the food side of things, Jif peanut butter and Kraft salad dressing increased by 57% and 70%.

The best an advertiser can get

In 1990 Gillette introduced Sensor shaving products. They were launched during a the recession and  five years after the recession talk died down, Gillette saw 49% of their sales come from products launced in the 5 year post-recession period.

Online Marketing

A good internet marketing campaign coupled with a strongly designed website that you continue to work on and promote could pay dividends when we’re out of the recession.

So, when all your competitors are sitting in an office WAITING for the phone to ring,  stand out from the competition by using an online advertising campaign to shout about your business and MAKE your phone ring!

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