For the last few months, the financial industry has been reporting on a rapidly approaching recession. Now it seems the COVID-19 Epidemic is speeding up that timeline considerably. It’s unfair to throw more things on your plate right now, but it’s time to double check your recession plan. Statistics, books, white papers, and keynotes widely suggest that the best strategy for brands to combat a recession is to advertise… more!
This Forbes article reports, “In the aftermath of the last recession in 2008, ad spending in the U.S. dropped by 13%. Nonetheless, there have been a number of studies going back nearly one century that point out the advantages of maintaining or even increasing ad budgets during a weaker economy. Those advertisers that maintained or grew their ad spending increased sales and market share during the recession and afterwards.”
The part when they say “…studies going back nearly one century…” brings us to what we consider to be one of the top ten most overused quotes by advertisers. It seems that every time the going might get tough, ad people tend to quote early 1900’s advertiser & politician Bruce Barton.
If you subscribe to this common sense approach, then you’ve been saving up, right? Wait, are you even allowed to save for such things or do you get less budget each year if you don’t spend all you were allotted on “active marketing”?
The whirlwind that only money can produce. Articulated so well by Roger Waters in Pink Floyd’s 1973 hit.
Money, get away
Get a good job with good pay and you're okay
Money, it's a gas
Grab that cash with both hands and make a stash
New car, caviar, four-star daydream
Think I'll buy me a football team.
How does the COVID-19 epidemic affect your recession plan? Will you lean into the recession with an increased spend? In a time where there are more tools available to marketers and advertisers to gain brand awareness and customers, what will you spend on?