Dealing with economic fluctuations can be one of the most challenging aspects of business ownership. Despite the complexities brought on by uncertain economic conditions, exciting opportunities to grow and outpace your competition lie ahead.
Advertising is usually one of the first expenses that local businesses reduce during changing market conditions, but is that a rushed or smart decision? It’s been shown that ad spending across many media types goes down when budgets tighten, whether newspapers, social media, radio or television.1 This trend creates an incredible opportunity for you to saturate the market when your competitors are nowhere to be seen. Try maintaining, or even increasing, your advertising efforts during challenging economic times. There will be ample opportunities for growth and very little noise to overcome.
Your messaging becomes even more important with less competition in the picture. You’ll have a chance to truly capture the hearts and minds of the community through your marketing channels. Find a way to stand out and let your customers know that you’ll be prepared to help them when they’re ready. Focus on building loyalty and brand recognition and watch how it impacts your business in the long run.
A great example of why you should never stop advertising can be found in the fast-food industry. During the 1990-1991 recession, McDonald’s cut their advertising budget, while Taco Bell and Pizza Hut did the opposite. The result would have McDonald’s executives regretting their decision, as they witnessed a sales decrease of roughly 28%. Meanwhile, Taco Bell sales increased by 40%, and Pizza Hut saw an amazing 60% sales increase during those times.2 More than 30 years later, this fascinating example continues to show just how important it is to be visible—regardless of uncertain economic forecasts.
Jeanne partners with Best Version Media (BVM), one of the fastest-growing private publishing companies in North America, to produce East Fishkill Living, her hometown monthly magazine, and works with colleagues on a number of similar glossy publications around the Hudson Valley, Westchester County, Rockland County and Connecticut. If you have target audiences in those areas, contact Jeanne to learn more. Thanks to BVM for portions of this content.