From the article: Advertising in a Bad Economy
Companies often cut their advertising dollars first when the economy is bad. However, research shows businesses that continue to advertise see increased sales during the recession and for two years after it ends.
In a recession, what's the one advertising medium you would invest in with a limited ad budget and why?
Direct mail
- Direct mail for a small business doesn't have to be a massive undertaking - you don't have to do a huge mailing to get results. When I first moved to Austin and was trying to grow my computer consulting business, I bought some matching envelopes, tri-fold brochures and letterhead for about $100, downloaded a list of new sales tax applicants for free from the state, narrowed the list by SIC code down to about 50, spent about $20 on postage, and that was it. From that $120 investment, I got three new clients that all together generated about $10,000 over the next year. One responded the day she received my direct mail package, asked me to come out the next day and cut me a $500 check on the spot, i.e., the campaign paid for itself in less than a week.
- —Guest Scott Allen
Internet Video
- With millions of people viewing online video every month, this largely untapped resource has a huge market potential. With consumers searching by keyword every day, your consumers can find you. Bring engaging video content to the folks with spending power, and your advertising dollars are being used in the most effective way.
- —Guest Lauren
Try Radio
- With radio - you can target you primary customers by age, gender, even income levels, and then get deeper into other lifestyle issues to find the right station. Target a daypart, either AM Drive, Middays, Nights, or weekends, and buy as much as you can, as frequency is the key. The other key is to have a creative ad that leaves the customers with a big benefit to doing business with you versus someone else, along with a call to action on a short term campaign, or a branding message for longer term, no discount pricing, campaigns.
- —Guest Alan
Specialized Print Magazines
- Even in tough economic times, people read specialized industry magazines. We've found it successful to advertise in top two B2B Auto industry magazines and get calls from potential clients and see our new client sign ups increase. You just have to be careful and design the campaign and the ads so that the message meets the needs of the audience otherwise you'll be wasting your money. This economy requires even more innovation and outside-the-box thinking. And if you're going to stretch your dollars, you have to be innovative and make sure that you will reach your goals and objectives with limited ad space.
- —Guest Meri
Digital billboard space
- Buy digital billboard space and be done. You pay for the placement. The content rotates. A high number of people can see your billboard while sitting at a red light. Much cheaper than other forms of advertising and you have a captive audience.
- —Guest Mel
Local News Web Sites
- You don't have to place TV commercial buys with a local TV station to be able to advertise on their web sites. Buying online space on a TV station's web site is affordable. It will help you reach a local audience for a longer amount of time than with other types of advertising.
- —Guest Heath