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The time to cut back is when you’re drowning in so much business you can barely fill the orders coming in. Ironically, that’s when most businesses decide to step up advertising, simply because they have the bucks to spend.
Better to put some aside for the rainy days that are now upon us. Then take to heart the following reasons why it’s important to keep advertising in a down economy.
1. Because that's when you need it the most.
2. Because that's when many competitors pull back, which makes your ads stand out even more.
3. Because some competitors will not pull back, and you'll lose market share to them if you do.
4. Because in a weak economy your customers look hard for the best deals on everything they buy, which leads to better ad readership.
5. Because a landmark b-to-b study by Yankelovich Partners & Harris Interactive found 89% of business executives surveyed said that when they see companies advertise in a down economy it made them feel more positive about that company's commitment to its products and services.
6. Because 85% of those executives believed it "extremely important" for their own companies to continue advertising in a down economy.
7. Because consistent advertising has a cumulative effect in branding. Interrupting it reduces brand awareness.
8. Because you need to keep customers aware of new products and changes in your business regardless of economic conditions.
9. Because of Bennigan's, Mervyn's, Baker's Square and Sharper Image. All of those companies enacted marketing budget cuts of up to 75% in the last couple of years. All recently went belly up.
10. Because out of sight, out of mind.
Okay, so you may think this blog is way too self-serving to take seriously. What if I told you the brainiacs at the Wharton School of Economics feel the same way? Read how they come to the same conclusion.