What should an advertiser or marketer do in a recession… or inflation… or stagflation?

Having navigated my clients through 5 recessions/stagflation and the historic Jimmy Carter 14% inflation rates… and 20% interest rates… I have some perspective.

I even had strategy of 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 times of economic stress.

I can tell you history gives a good roadmap to the future for companies to survive and prosper during economic uncertainties.

Here are just a few of the stats to help guide you:

• 365% sales increase for companies that maintained or increased their ad 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.
• 2.5 times 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 advertising and marketing budget. Harvard Business reveals that out of 4,700 companies in the 2008-2009 recession: 17% went into bankruptcy or were acquired, 80% slowly recovered or more in 3 years after the recession ended. But, 9% actually grew during and after the recession and then increased their ad budgets.
• 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 this inflationary time with recession/stagflation, all of your marketing and advertising copy for digital ads, landing pages, pre-roll, direct mail, video and TV, should have changed to reflect and take advantage of the different economic environment.

If not, you suffer a drop in response.

And a new plan should be developed now to move ahead and market properly.

Don’t give up out of fear.

Do it right.

My team is here to help if you need guidance and speed in being able to navigate the recession/inflation/stagflation 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. That means changes to your prospects, perception and buying budgets.

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 Michael a call at 615-933-4647 or email him at [email protected].