Don’t cut your marketing budgeting just yet!
A lot of companies are in a difficult financial position this year and when choosing where to make money-saving cuts, one of the first things to go is marketing and advertising. I’ve always told clients to think about this in a different way – rather than cutting your marketing budget during a downturn, take advantage of the limited competition and make a splash with customers. While they may not be spending right now, seeing advertising from you will reinforce their belief that you are a strong, vital organization. Plus, people will remember your name when their wallets start to fill up again. Take advantage of some downtime and stay top of mind!
Today, eMarketer.com posted an article supporting this argument with some research:
- Fifty-six percent of Internet users who noticed a decline in ads from a retailer saw it as a sign that the store was struggling—15% thought the store would go bust, and soon.
- On the other hand, frequent retail ads led respondents to feel the stores were committed to doing business, being competitive and—in some cases—healthy. (Ad Overkill May Not Be a Bad Thing During Tough Times by eMarketer, June 2009)
EDIT June 5, 2009 – Just received an Ad-ology report confirming the data above and adding some interesting points about consumer spending habits now versus one year ago:
So don’t cut that marketing budget! Play the long game, stay top of mind even when your audience isn’t spending money.