Selling Through Economic Uncertainty
Selling Through Economic Uncertainty – ONE YEAR LATER
Twelve months ago, the world changed. Everyone was impacted. People were worried about their health and their incomes. The U.S. economy came to a screeching halt. This included radio advertising, as most major advertisers either reduced or cancelled their marketing efforts. We all felt the pain.
Last year, as business dried up, Research Director, Inc. tried to make the case why advertisers should not stop their marketing. Rather, we proposed that during an economic downturn, advertisers should continue their marketing efforts. Yes, business is coming back slowly. However, many advertisers still remain on the sidelines because of continued uncertainty.
For that reason, I felt it was valuable to revisit why businesses need to advertise in this economic climate. The following four points come from the September 2019 Forbes article “When a Recession Comes, Don’t Stop Advertising.” These are the key points you need to stress to your advertisers:
As competitors reduce their marketing dollars, your message will stand out more. Using radio terms, your share of ear will be greater. Instead of blending in with an abundance of messages, your radio ad will garnish the attention it deserves.
Those that advertise in uncertain times communicate to potential consumers that their doors will be open beyond this downturn. While the message may be subliminal, it says that you believe in the future of your company.
While not something most sales reps want to promote, pricing advertising, like most items, is based on supply and demand. As demand declines, the price for advertising also declines. Advertisers that understand the value of marketing in this economy will get more bang for the buck, and therefore greater ROI.
Now, just about everyone agrees we are coming out of this economic downturn. As business and advertising picks up, commercial rates will rise. Companies that decreased or eliminated their advertising over the past year are going to have to allocate additional resources just to reestablish their brand. Conversely, those that continued to advertise can simply maintain their advertising outlay because their brand remained established.
It makes good business sense to maintain your advertising presence, but it still bears repeating:
WHEN TIMES ARE GOOD YOU SHOULD ADVERTISE … WHEN TIMES ARE BAD YOU MUST ADVERTISE.