4-Sight: 4 Reasons to Advertise During Challenging Economic Times

It was 2008, and the city of Rawlins, Wyoming, was still feeling the effects of the economic recession.

I was meeting with one of my favorite clients, John, who had signed a year-long marketing campaign the previous year. Although we had discussed business and the campaign throughout the year, it was time to see if he wanted to renew.

"I don't know, Jerry," he said. "Our revenue has pretty much stayed the same."

I found that interesting and asked, "How many businesses around you have closed in the last year?"

He paused for a moment, looking down the street at the vacant buildings, and then replied, "Yeah, hand me the paperwork. I'll sign up for another year."

In the face of economic uncertainty, businesses often grapple with the decision of whether to cut back on advertising expenditures or maintain their promotional efforts.

While it might seem prudent to reduce costs during lean times, history and research suggest that continuing to advertise can yield significant advantages. Here are four compelling reasons why companies should continue advertising during challenging economic times:

1. Increase Market Share

When your competitors pull back on their advertising efforts, a golden opportunity arises for you to capture a larger slice of the market. Studies indicate that businesses which sustain or even boost their ad spending during economic downturns can substantially expand their market share, both in the midst of the recession and in its aftermath. With fewer contenders vying for consumer attention, your advertising budget stretches further, delivering greater impact and reach.

2. Maintain Brand Awareness

Keeping your advertising efforts active ensures that your brand remains prominent in consumers' minds. If you choose to go silent, there's a risk that customers might forget about you or mistakenly believe you've shut down. By maintaining your visibility, you reaffirm to customers that you are still operational and ready to meet their needs when they're prepared to make a purchase.

3. Build Consumer Confidence

Demonstrating your business's strength and perseverance through advertising during economic downturns sends a powerful message. It not only instills reassurance in your existing customers but also draws in those who are looking for dependable and resilient brands. A strong advertising presence signals that your company is weathering the storm and remains a steadfast and trustworthy option.

4. Position for the Recovery

Historical evidence indicates that businesses that continue to advertise during economic recessions often bounce back more swiftly once the financial climate improves. By preserving your brand's visibility and possibly enlarging your market share, you position yourself advantageously to seize the opportunities presented by an uptick in consumer spending when it resumes.

Although the instinct to cut advertising budgets during economic hardships is understandable, over a century of research reveals that sustained ad spending brings substantial long-term rewards. By crafting a strategic approach that emphasizes brand visibility and customer loyalty, advertising through downturns can pave the way for your company's future growth and prosperity.

Jerry Raehal is the Chief Growth Officer at OnePress, which is powered by the Nebraska Press Association. You can contact him jerry@onepressne.com