The recovery is underway.
What should an advertiser or marketer do in this period of recovery?
Obviously, every target audience is different.
When you consider 44 million people unemployed and thousands of small businesses having gone bankrupt, the marketplace has changed dramatically.
And each state is different.
California, New York, and Illinois are still seeing dramatic increases in joblessness, bankruptcy, and fear among the people in the state. Their re-openings have been slow and tortuous for businesses.
Texas, Florida, and Tennessee are among the states that have been open now for over a month and economic activity is booming.
Response rates are up for those who are in the marketplace right now. The costs of media are dramatically down right now, as there are less advertisers advertising.
As of now, 81% of marketers and advertisers have cut all or most of their advertising.
12% have the same budget as before.
7% have increased their advertising budget. Who is right?
Obviously, history gives an indication of what is best and what is not. That’s why you should always take a look at the history of advertising and marketing in a recession.
Having helped companies in their recovery from 5 recessions, I can tell you history gives a good roadmap to the future.
Here are some stats to help guide you:
- 365% sales increase for companies that maintained or increased their budget. A McGraw Hill Research study of recession marketing revealed that those that maintained or increased their advertising during a recession posted an average sales growth of 256% after the recession.
- 5% market share growth by increasing their budget. In the last recession, only 18% of companies increased their marketing. As a result, their market share growth outpaced other businesses by 2.5 times.
- 9% grew during and after recession by increasing their budget. Harvard Business reveals in 2010: 4,700 companies in the 2008-2009 recession. 17% bankruptcy or acquired. 80% slowly recovered or more in 3 years after the recession ended. 9% grew during and after the recession.
- 3 years head start in growth and market domination by increasing their budget. Frankenberger and Graham (1976-1991): firms that advertised during a recession increased sales, during and after, helping give a head start in recovery and sector domination for up to 3 years after the recession.
During the recovery, all of your marketing and advertising, copy, and graphics, video and TV, should have changed.
And a new plan should be developed to move ahead and market properly.
My team is here to help if you need guidance and speed in being able to catch the recovery and dominate the market.
Waiting will only result in lost time and money, and allow competitors to move ahead.
If you’re considering that most marketing and advertising revisions take at least a month or 2 months, the need to go ahead and market quickly and start revisions based upon new market realities is critical.
To watch our recent webinar on “Marketing and Advertising During the Historic Pandemic Crisis: 7 Emergency Actions Presidents and Marketing Directors Should Do Immediately in this Economic Collapse” click here.
Feel free to call Caleb or Johnny at (615)933-4647 to be able to help move your market and advertising plan with efficiency and effectiveness.