Since the Fall of 2008 and recession that has caused nearly 10% reported unemployment and hundreds of thousands of small businesses to go out of business, American companies, large and small, have been cutting back. They are making changes to their core business that in the long run hurts their bottom line. Cutting down on advertising, which for many companies is hardly a priority anyhow usually consisting of roughly 2-5% of net sales, has been a problem across the board.
Cutting advertising when a company is in desperate need of bringing in dollars, either by investments or profit, is counter-intuitive.
Think about it. In essence, companies are saying, "In order to sell our product, gain market share and secure investments, we need to take our message and remove it from the public eye. We need to remove any chance that we have of talking to our customers and convincing them that even though its hard economic times, they should still by our product because it's necessary and worth the cost."
This type of thinking is what separates those companies that were in business at the beginning of the recession and still are and those that are now, unfortunately, either struggling or out of business altogether.
Have you ever heard the saying "When the good gets tough, the Tough get going?" There are many ways you can take this quote but in my opinion it means that when you are up against a wall, you don't quit. You push back. You put your company out there more! If everyone else is giving up and taking their advertising away, BOOST YOURS! Times may be tough but somehow people are still spending money. They are just being more careful, more selective.
With the right message and the right product, advertising gives you the chance to help consumers make the right decision.
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