The trade war impacts every company president and marketing director.
What should an advertiser or company do during economic uncertainty, including a recession… or inflation… or stagflation?
Having navigated my advertising agency clients through five recessions/stagflation, the Jimmy Carter 14% inflation rate and Biden’s 20% (in four years)… and even a period with 20% interest rates… I have some perspective on what a company should do right now.
I even have a strategy of hope and good news.
You may be worried, confused, unsure.
But this uncertainty will pass, and past periods of e-commerce pain give us a clear roadmap to survive, grow and dominate your market.
History gives clarity on what is best and what is not. That’s why you should always examine the history of advertising and marketing during times of economic stress.
Business owners usually cut their marketing and advertising first to save money and cut expenses.
Companies are doing this right now.
But is this the right strategy?
Here are just a few of the historical stats to help guide you on cutting your ad budget, keeping it the same or growing it:
- 265% sales increase for companies that maintained or increased their ad budget during a recession or stagflation A McGraw Hill Research study of recession marketing revealed that “companies who continued to advertise during the two-year recession saw 256% higher sales than their competitor’s post-recession. Those who chose not to advertise during an economic slump saw virtually 0% market share increase and a rise in sales of only 18% once the economy regained traction.
- 5 times market share growth for companies by increasing their budget during a recession In the last recession, 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% of U.S. companies increased their sales during and after a recession by increasing their advertising and marketing budgets. Harvard Business reveals that out of 4,700 companies in the 2008-2009 recession, 17% went into bankruptcy or were acquired by other companies, 80% slowly recovered, and it took more than 3 years to recover after the recession ended. However, 9% grew during and after the recession, and their ad budgets increased.
- Companies got 3 years’ head start in growth and market domination by increasing their ad budget
Frankenberger and Graham’s (1976-1991) research found that firms that advertised during a recession increased sales during and after the recession, helping give a head start in recovery and sector domination for up to three years after the recession.
The evidence of these – and many more – studies match my 30 plus years’ experience of seeing the rise and fall of companies and how they use their advertising budget.
Here are three keys to success in marketing in economic turmoil:
Key # 1. Your Ad Budget
Don’t cut it, grow it if you can. It’s your chance to not just survive but grow… and dominate your market.
Key #2. Use only “Accountable” or “Scientific” advertising.
“Accountable” or “Scientific” advertising means you always know your results. You’re always testing media, channels and creative. You know your ROI. No guessing. Immediate adjusting.
Key #3. Adjusting Your Ad Budget and Strategies
During the Trump tariff transition period, with stagflation and a potential recession and growing inflation, adjust your copy to your client’s fears or worries.
The current economic environment is impacting both B2C and B2B buying.
All 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 new economic environment.
If not, you’ll 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. Don’t cut your ad budget out of overreaction. Don’t let your competitors take advantage of the new market environment.
Do it right.
Waiting will only result in lost time and money and allow competitors to move ahead.
The current economic uncertainty and cutting back on buying is likely to last 6-12 months, no matter what the headlines say. That means changes to your prospects’ and clients’ buying perception and buying budgets.
My team is here to help if you need guidance and speed in navigating the new economic environment and catching the recovery so you can dominate your market.
We can help you reevaluate your budget, review results, create new creative, and test new and different media and strategies.
Now is the time to be prepared for the new realities ahead.
Call Michael Oppenheimer at 615-933-4647 or email him at [email protected].
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Let us be your second opinion.
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- Proven Success: 120 prestigious awards in 2024 alone.
- Data-Driven Strategy: We don’t guess. We know what works. Our campaigns are crafted with precision to deliver maximum ROI.
- Expertise Across the Board: From media buying to digital copywriting, testing, and direct-to-consumer strategies—we’ve got it all covered.
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…and much more!
Our team has launched new products… and helped reposition companies to a higher level. Our strategies and tactics have generated leads, and built powerhouse e-commerce programs that have helped turn small businesses into multimillion dollar success stories and grown large companies.
Our formula is data driven, accountable advertising that supercharges your growth. Every campaign is crafted precisely, focusing on what matters most to drive your success.
Let’s discuss your marketing challenges and give you a second opinion.
Contact Michael Oppenheimer at 615-933-4647 or email him at [email protected].
Start transforming your marketing results today with CDMG, Inc.
