“When times are good, you should advertise. When times are bad, you MUST advertise.” Recession times are an excellent opportunity to abandon your « high cost » agency and adopt TVLowCost
“When times are good, you should advertise. When times are bad, you MUST advertise.”
Here we are, recession seems to be very probable in front of us in the vast majority of countries. All the reasons seem to be joined to create a slow down in many markets. Many companies will start reducing their marketing expenditures in order to save money and try to keep a normal level of profitability. Every sound manager knows it is not a good decision to stop advertising, but “what else can I do ?” will they say… It is not so easy to maintain the same level of advertising investement when you know that your billing will probably be reduced in the months to come.
In a famous study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that Firms that Maintained or Increased their Advertising Expenditures during the 1981-1982 recession Averaged Significantly Higher Sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. By 1985, sales of companies that were Aggressive Recession Advertisers had Risen 256% over those that didn’t keep up their advertising. In addition, a series of six studies conducted by the research firm of Meldrum & Fewsmith (below) showed conclusively that Advertising Aggressively during Recessions not only Increases Sales but Increases Profits.
(source: Meldrum & Fewsmith)
Plenty of evidence demonstrate this, but, I still hear many advertisers saying : “OK, I agree on this, but I cannot afford the costs of advertising on TV in this moment ?”
Well, then it’s time for you to change your habits and quit the world of “HIGH COST” TV advertising, and discovering that with TVLowCost, TV advertising is not only affordable, but also very efficient, for budgets several times inferior to what you used to pay! With the power of TV advertising to boost your business.
Recession should be the opportunity to adopt a “Low Cost Attitude” in TV advertising.