American Business Press analyzed 143 companies during the 1974/75 downturn in our economy and found that companies that advertised during the recession periods had the highest growth in sales and net income during the two study years and the two years following the recession. They also proved that companies that cut advertising had the lowest sales and net income increases during the same study periods. The first area to get squeezed in a recession is usually the advertising department.  This is a very common mistake most companies make.  Those that advertise in a bad economy and take the risk are more likely to come out ahead of the rest.  Change your viewpoint and see this as an opportunity to grow your business.

McGraw-Hill also found similar results when they studied companies’ advertising during the 1981/82 recession. They found that companies that cut advertising increased their sales only 19% following the recession while companies that continued to advertise during the recession experienced a whopping 275% increase in their sales.

This graph is a summary of the McGraw-Hill Research (http://www.mcgraw-hill.com) during the 1981-1982 recession.  Year one is 1980 and year 6 is 1985.  You can see from the graph that those that did not cut back on their advertising skyrocketed ahead of their competition.  Those companies experienced a growth of 265% in 1985.

Make the most of this opportunity.

Companies that are advertising to today’s buyers and business owners need to change their message to adapt to the economic climate.  Restaurants are offering discounts or “free coffee” to lure people in.  An advertising message must focus on a company’s core values and strengths…why a customer should go with them…what the pro’s are…the length that you are willing to go to provide quality work/products.  Your customers will be more confident in pursuing a long term relationship far after the “storm” is over if you stay consistent and help them through these hard times.

In closure, there’s money still on the table and those that work the hardest for it will bank the major share of it.

by Tiffany Patterson

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