When the economy goes south one of the first things business owners tend to cut back on is advertising. This is usually a big mistake. That’s when you should be spending more on advertising. Here’s why:
- Your competition is cutting back. If you move forward then who do you think customers will see in the limelight?
- A loss of revenue + less investment in your business = less revenue.
- People don’t stop spending money in a recession. They may spend less, but they still eat, sleep, drive cars, etc. Chances are, they are still going to need your services even if in a lesser amount.
You put these three things together and it means advertising is still relevant and necessary. Instead of cutting your advertising spend, try to find ways to get more mileage out of the spending that you are doing. If you can increase your business by spending the same amount on advertising even when the economy is down then you know you are on the right track with your business. If you spend less on advertising you will likely earn less.