When economic hardships such as recession hit, companies feel the pressure to change their budgets.
This is an understandable approach in some circumstances but you would be mistaken to make drastic changes to your marketing and advertising efforts.
Recent studies from the ROI Genome Intelligence Report showed that 60% of companies that increased their media investment during the latest recession saw ROI improvements.
The report also showed that companies with more paid advertisements saw a 17% increase in their incremental sales, while companies who did not risk losing 15% or more of their business to industry competition.
This data contrasts with the current trend that cutting spending on marketing and advertising during economic hardships is the best solution.
Cutting spending in these areas short-term might feel like the right choice, however in the long-term with clients leaving for other options, and business relationships subsiding the projected growth year-by-year has been affected greatly. The key strategy is to keep your existing audiences and continue to mitigate business loss, and outreach while others are stagnant.
Mike Menkes, Senior Vice President of Analytics Partners said in a press release, “The best way to get through a possible recession and prosper on the other side of it is to think long term by investing in your brand and your relationships with customers.” as well as “Short-term thinking might make some shareholders happy at the next earnings report, but it undermines growth and therefore margins and true shareholder value over both the short and long term.”
Adopting a bullish strategy during these times will not only set you apart from the general demographic, but it will also put your brand in a position to potentially take your competitor’s customers, as they are cutting costs.
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