During these unprecedented times, many marketers may consider cutting their advertising budgets due to fears of recession. Some data is showing that the United States may already be in a recession but economists expect this recession to be short-lived. Many economists believe that the U.S. economy will rebound in Q3 and Q4 of this year. This means that now is the perfect time to advertise and is especially important for businesses who serve essential products to consumer and B2B markets.
Studies prove that there are many advantages of increasing ad budgets during weaker economies. Advertisers that grow their ad spending during recessions tend to increase sales and market share during the tough economic times and afterwards.
There are many reasons to advertise during economic slowdowns.
1. Advertising competition may decrease which helps brands cut through the advertising noise and if a brand cuts back on advertising dollars, the brand can lose share of mind
2. The cost of advertising may drop giving brands more opportunity to increase their advertising reach at a reduced cost
3. Brands can project corporate stability during tough economic times
Continuing to invest in brand advertising is extremely important even during uncertain economic times. Investing in a brand offers strong value to businesses and can help brands survive the long term even if current consumer demand patterns are reduced. Cutting advertising budgets during a recession is risky as it may provide some short-term profitability relief but the loss of market share will be difficult to regain when the economy recovers. The recovery of the economy is expected to be V-shaped so when all of the restrictions are finally lifted, there will likely be an increase in demand and smart businesses will be prepared to service their customers.
The unique environment of the current pandemic pushed many brands to connect with their customers digitally. From emails announcing vital information about store safety and closures to digital marketing campaigns that pushed customers to shop online instead of in retail locations, digital advertising excelled even during the unique economic and health crisis.
Many customers who typically shopped in retail stores were exposed to the ease of shopping online for the first time and these consumers may continue to purchase online in the future. This means that now is the perfect time to take advertising and marketing campaigns online with many consumers relying on email marketing to help them find the products and services they need during these difficult times. The natural tendency is for advertisers to want to cut back on advertising during a recession, but the brands that increase or maintain their ad budgets can increase their sales and market share for the long term.
Learn more at https://www.etargetmedia.com