Should Your Marketing Budget Shelter in Place?
Pandemic. Economic Standstill. This is no time to spend any money on advertising or marketing, I need to shelter in place!
Maybe so, but maybe not. The kneejerk reaction is to slam on the brakes as hard as you can…which is the exact opposite of what you’re directed to do when your car is heading into a skid.
When your competitors cut back on their marketing, it may not only give your brand the opportunity to take center stage, but also gives the perception of stability during a challenging economic environment. Keep in mind that tough times can mean a drop in advertising costs or a good promotion which can mean a new opportunity with discounted pricing. (P.S. Check in with me on a great offer from Northwest Bergen Lifestyle magazine).
Consider this. In the 1920’s, Post was the leader in ready-to-eat cereal. As the Depression marched on, Post cut back its ad budget while Kellogg’s increased theirs, introducing a new cereal called Rice Krispies. Kellogg’s profits grew by 30% and became the new leader of its category.
Although our natural inclination is to cut back on advertising during a bad economy, businesses that maintain their strategy, remain visible, and/or change their messaging--whatever the media--can get a boost that will last way beyond the market downturn.