Recession Proof!

Benefits of marketing when others are trimming back advertising budgets.

We only have history as a guide; understanding that history is based primarily on print, radio and TV advertising. There are distinctions but the basics apply to on-line as well.

Example 1

A 1981-82 McGraw-Hill Research study found;

Businesses that maintained or increased advertising during this recession showed higher sales growth both during the recession and for the three years following. By 1985 sales for the increased advertising group were 256% greater than businesses that cut back on advertising during the recession.

Example 2

During the 2001 recession aggressive advertisers increased market shares 2 ½ times the average for all businesses. Conversely 80% of all businesses increased advertising following the recession with little effect on market shares.

Innovating through a Recession by Professor Andrew J. Razeghi at the Kellogg School of Management at Northwestern University.

Stand apart from the herd: advertising during a recession is 2 1/2 times as effective as money spent when your competitors are ramping up their promotions.

How do online advertising cost/benefits compare to other forms of media?

There are many forms of online promotion; some that were once effective may now actually be a negative. (Microsoft lost the once popular Excel paper clip) An effective website; search engine optimized is a proven winner; but must be kept updated. Social networking is hot right now. Depending on your business objectives pay-per-click campaigns may be effective. The list goes on. More than any other form of advertising your online promotion can be targeted to your most likely customers.