It seems like common sense, if you advertise when everyone else stops marketing...
- Your message is more likely to be noticed due to fewer ads in the market.
- Your business is more likely to be remembered when everyone starts advertising again.
It seems common sense but yet every recession one of the first things companies do is pull back on their marketing and advertising.
During the current economic downturn you have an incredible opportunity to INCREASE SALES and BUILD MARKET SHARE. But don't take my word for it... there's almost a century of proof to back up common sense.
Hers's a summary:
1990s - A MarketSense study concluded the best strategy for coping with a recession is balanced long-term branding with promotion for short-term sales. The study shows brands like Jif and Kraft Salad dressing experienced sales growth of 57% and 70% respectively after increasing their advertising during a recession.
1980s - McGraw Hill Research analyzed 600 B2B companies and found that those who maintained or increased advertising grew significantly... both during the recession and the following three years. In fact, by 1985, sales of companies that advertised aggressively had grown 275% over those that didn't!
1970’s – An American Business Press study showed that companies who advertise and market aggressively can maintain and increase sales during a recession and in the following years.
1940’s, 50’s, 60’s - Buchen Advertising tracked advertising dollars vs. sales trends for the recessions of 1949, 1954, 1958 and 1961. They found that sales and profits dropped at companies that cut back on advertising and, that after the recession had ended, those same companies lagged behind the ones that maintained their ad budgets.
1920’s - Advertising executive Roland S. Vaile tracked 200 companies through the recession of 1923. He reported in the April, 1927 issue of the Harvard Business Review that companies that had continued to advertise during the economic downturn were 20% ahead of where they had been before the recession, while companies that reduced advertising were still in the recession, 7% below their 1920 levels.
2011 – The results are up to you!
Still not convinced? Need more?
Frankenberger and Graham, two Oregon professors, studied 2,662 firms over 16,000+ ‘firm years’ (1970 – 1991) to determine the effect of advertising on a company during a recession. The results?
Firms that advertised during a recession increased in value and got more marketing bang for their buck … in some cases for up to three years after the recession had ended.
Why Ad Specialties?
Here’s why promotional products deliver the best return on investment in an unsettled economy and why they should be a crucial part of your customer's marketing mix.
Increased sales. 62% of customers did business with the company after receiving the promotional product.
Brand awareness. 84% of customers remembered the business that provided them with the promotional product.
Return on investment. At $.004/ impression promotional products have the best CPI of popular advertising media.
Improved relations. 42% of customers viewed the business more favorably after receiving the item and virtually none indicated a negative feeling.
Frequency and repetition. A key to advertising, promotional products are kept on average for 7 months and many are used every business day!
All of this information and more is available as part of ASI's Advertising Specialties Impact and Exposures Study – October, 2008. Visit www.asicentral.com/study for more details.
What Business Executives are saying*
When you see a company advertise in a down economy … 86% of executives say the advertising companies is top of mind when it comes time to make purchase decisions 86% also say they feel better about the company's commitment to products and services.
Harris Interactive/ Yankelovich/ ABM survey of 505 B2B executives regarding companies that advertise during a recession.
My favorite quote to date on the topic ...
“I have yet to see any study that proves timidity is the route to success. Studies consistently have proven that companies that have the intelligence and guts to maintain or increase their overall marketing and advertising efforts in times of business downturns will get the edge on their timid competitors."
Senior VP, J. Welsey Rosberg Meldrum Fewsmith Article from ASI Network Blog