What should an advertiser or marketer do in a recession… and inflation?
Having navigated my clients through 5 recessions and the historic Jimmy carter 14% inflation rates… and 20% interest rates… I have some perspective.
And even hope and good news.
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.
I can tell you history gives a good roadmap to the future for companies to survive and prosper during economic uncertainties.
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. But 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 that out of 4,700 companies in the 2008-2009 recession: 17% bankruptcy or acquired, 80% slowly recovered or more in 3 years after the recession ended, and 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 sale, 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 to reflect and take advantage of the economic environment.
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 navigate the recession/inflation and to catch the recovery and dominate your market.
Waiting will only result in lost time and money and allow competitors to move ahead.
The current recession is likely to last 6-12 months… and inflation much longer.
Now is the time to be prepared for the new realities ahead.
To be able to help move your market and advertising plan with efficiency and effectiveness, give us a call at 615-933-4647 or email Craig at email@example.com