Advertising Age recently posted an article (http://ow.ly/2f2pa) about several bold marketers that actually raised their advertising budgets in the teeth of the current recession – with very positive results. According to the article, they enjoyed “double the success rate of those whose spending rate declined.”
These companies come from a broad variety of industries, from retail (Walmart) to fast food (McDonald’s) as well as insurance (Progressive) and Pharmaceuticals (Pfizer).
A proven strategy
The strategy of increasing advertising and marketing during economic downturns is not new. Not only do organizations increase their brand presence, they can take advantage of media deflation for an even bigger bang for their buck. To be aggressive at a time when competitors are pulling back increases overall Share of Voice and market dominance. And, it has been proven effective since the original PIMS (Profit Impact of Marketing Strategy) research was begun in the early 1970s by Harvard’s Management Science Institute and later managed by the American Strategic Planning Institute.
Having spent my career in marketing communications, I’ve not only followed and appreciated this bold and successful strategy, I’ve advocated it. It’s undeniably tough advice to give at a time when services and jobs are being slashed. Understandably, few organizations are willing to do so.
But…the world has changed
Despite these most recent successes, I’ve begun to change my tune. The marketing world has changed and we all need to rethink past practices. In this case, since consumer media habits have changed, most local or regional advertisers no longer need to depend on shear media weight. It is possible to dominate the market using other means. In addition, the decline of (expensive) traditional outbound media and the increase of (inexpensive) alternative and social media have dramatically altered the marketing landscape.
Today there are many other ways to increase brand exposure and customer/prospect involvement. Compelling video, for example, can be less expensive to produce. You might initiate a campaign with paid TV but achieve additional distribution through YouTube and other social media channels – it’s not only inexpensive, it’s permanent. Of course, good compelling content remains a key to success.
So what camp are you in?
Boldly increase spending to dominate your competition while they are keeping their head down? It’s a proven strategy.
Be among those that keep your head down, saving resources until conditions improve? It’s much easier to explain than layoffs.
Look for other bold initiatives that can live within decreased budgets? It’s unproven and even uncomfortable.
Your comments and insights are welcome.
Today’s parting thought:
“Lack of money is no obstacle. Lack of an idea is an obstacle.” – Ken Hakuta
(Note: I will be revising this blog in a few short weeks to better enable participation. Please continue to follow and join the discussion.)
