“Stopping advertising to save money is like stopping your watch to save time.” Henry Ford
The marketing budget is often one of the first things to be cut when an economic downturn occurs. Yet history has shown us time and again that recessions can actually be times of incredible opportunities for businesses which continue to grow their brand awareness and spend on marketing. Here are five top reasons why you need to keep your budget for continued growth throughout and beyond an economic downturn:
External marketing is essential in ongoing growth
Marketing has developed and become more complex over recent years. In-house specialists are essential in the running of campaigns but do not underestimate the importance of working with a third party. HSE People is a completely independent company with the biggest social media network in the industry. We use our well-known and established brand to promote companies but also to help them increase their online awareness at a time where a social media presence is essential! HSE People offer a variety of solutions with a fantastic ROI.
HSE, Risk, Compliance and ESG do not become less important during a recession!
In times of economic difficulty not all markets and industries are affected in the same way. The health and safety of people, places and the planet are not issues that decrease in importance AT ANY TIME!
It is so important to keep your brand at the forefront of peoples’ minds so that when spending restarts, you are at the top of the list.
“Never waste a good recession.” Angela Ahrendts, CEO, Burberry
Learn from history, the evidence is there
During the US recession of the early 1980s, McGraw Hill carried out a study of 600 businesses. Of the brands they analysed, those who continued to advertise during the 1980-82 recession were 256% ahead of their competitors who didn’t advertise.
In the 1990-91 recession, Pizza Hut and Taco Bell took advantage of McDonald’s decision to drop its advertising and promotion budget. As a result, Pizza Hut increased sales by 61%, Taco Bell sales grew by 40% and McDonald’s sales declined by 28%. Source: Marketing Moves
Your competitor’s loss is your gain
Let me put it simply – when other companies reduce advertising activity, those that increase it have a significantly larger audience to sell to.
An example – 10 businesses spend the same amount to advertise to the same audience. During an economic downturn 9 of them HALVE their budget and 1 DOUBLES it.
The 9 businesses share decreases each from 10% to 7.7% Yes they are spending less but what about the 1 business that doubles their spend? Their share goes from 10% to 30.8%, a double in spend results in three times market share.
Get more out of your marketing budget
There are very few businesses not negatively affected by an economic downturn. Difficult times mean businesses may need to rely on other businesses’ understanding and support. Here at HSE People we understand, and we want to help. As an independent business we are not dictated by a board of directors and shareholders. We are happy to offer payment plans, discounts on bulk bookings and advice on how to achieve maximum engagement on a budget.
Author: Rebecca Lambert
“I decided not to participate in recessions.” Sam Walton, Founder, Wal-Mart
