Economy Slow? Should You Cut Back on Advertising Costs to Compensate?

Things may not be as rosy today as they were a couple of years ago for your business, but should you cut back on your advertising budget to cut down on the overhead? At first it may be tempting to cut your advertising budget when your cash flow is lower, however this could be the first step in a downward spiral.

The only purpose of advertising is to bring your message to the marketplace to entice them to use your product or service. If you stop advertising how is the marketplace going to know your story?

Advertising during a sluggish economy clearly creates a competitive advantage, according to the study, with a majority of executives agreeing that seeing a company advertise during slower times makes them feel more positive about the company’s commitment to its products and services. But perhaps most important is staying at the top of buyers’ minds when purchase decisions are made.

What business people need to do during a weaker economy is to get lean and use advertising intelligently. By tracking where your customers hear about you AND find your contact information you can plan a lean quality advertising campaign.

Where would you go to find businesses or services you need?
Where would you go to find out who your competition is?
When would the marketplace need your product or service?
Where would your potential prospect be when they looked for your product or service?

There are lots of affordable methods of advertising, both in creative and directional mediums.

Is your marketplace in a certain area of your city? Check out local community newsletters and their rates. This medium is relevant to those that receive it and targeted to a geographical target area. In Calgary Flexys provides community newsletters with amazing rates for advertisers.

Phonebooks are distributed to geographical areas and kept in homes, vehicles and businesses for a year for use whenever they need a product or service. In Calgary the Canpages being the 2nd largest phonebook in Canada they provide great rates and good coverage.

Online there are lots of options, both free and affordable. kijiji, craigslist, canpages.ca, and bargain finder.

Regardless of the medium, the Yankelovich/Harris concludes that advertising during all economic times is critical to the future success of companies. The bottom line is clear: If a company is not communicating with customers when they enter the market, then that company will not be considered in the buying decision. That fundamental truth does not change, regardless of the economy.

Business people need to remember that advertising is not a cost but an investment. Unlike their electric bill, their advertising costs will cover it's cost and bring in a profit. If business people want to stay in business they need to change their attitude towards the cost of advertising because without it they cannot grow their business or replace those that leave.

Links:
Do Ads Work?
6 Survival Tips for Lean Times
Advertising Can People Find Your Business?
Is the Cost of Living Effecting Your Business?