During a recession, the ad budget's usually the first thing a company crosses off the list. There's no money going out the door so company execs see an immediate difference in their PNL column.
Then there's the argument of a consumer's role during a recession. Money's tight so they'll be clutching their wallets. Why advertise?
While cutting your ad budget may seem to be the most logical approach to making a quick buck, you have to consider the long-term effects. Even big brands suffer without the repeat exposure you receive through advertising.
In a recession, companies should reprioritize their marketing standpoint rather than eliminating their entire ad budget. In fact, there are several ways you can still advertise while cutting back on your expenses.
Instead of canceling your ads completely, reduce their amount of air time. Move the ads to a lower priced time slot.
The same goes for print ads. Instead of having your ad appear in 10 publications, change the amount to 5.
You can even use some of those saved ad dollars to beef up one area of your ad campaign. You still come out ahead and can gain an additional customer base by making your ad bigger, airing your commercial during a peak time, etc.
While the current market trends point to a recession, companies should reconsider slashing the ad budget. Scractching your ad campaign to save a buck has its price.
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