Why right now is the perfect time to increase your advertising

Posted by Wildfire Marketing Group | January 30th, 2009

Business is slowing down in most industries. Job loss is approaching record numbers. Access to credit has all but dried up. Common sense says that now is the time to tighten the purse strings and hunker down to weather the impending storm, but common sense is wrong. So why is right now the perfect time to increase your advertising?

Most of your competitors are cutting back or eliminating their advertising. That means that even if you just maintain your campaigns, you’re relative exposure is going to grow, think about the impact if you increase your advertising. Let’s say that your closest competitor cuts their advertising by just 10%, and you increase yours by the same 10%. Right off the bat, you’ll have achieved a 20% increase in exposure over them. Now, when you factor in your typical conversion ratio, you can determine what that will mean to your company in actual revenue. If you’re really smart, you’ll take a portion of that additional revenue and further increase your advertising, resulting in even more revenue. Keep in mind, this example only takes into account your closest competitor. Since most, if not all of your competitors will be decreasing their advertising, your results could be far more substantial than you imagine.

It’s not just a matter of revenue here, though that’s certainly nice. It’s also a matter of increased market share. Market share that will remain yours when the economy picks back up, as long as you continue to do things right.

Something else to consider is that the media companies are feeling the pain too. Many of them are more likely to work out better pricing to keep advertisers like you on board. If their willing to do that, what do you think they’ll be willing to do when you start asking about increasing your advertising with them? When they start mentioning the word “discount” in order to woo you, avoid the temptation to take it. Instead, suggest increased ad space at the same price. A 5-10% might sound good, but 10-20% more advertising for the same price is a better deal, and it’s a win for both you and the media company.

Companies that succeed are the ones that buck the trend and do what everyone else is avoiding. Companies that remain in mediocrity or fail are the ones that follow the herd. Which one are you going to be?

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