Frank Best International - Advertising In Tough Economic Times Is A Must

Why Should You Advertise in Tough Economic Times?

There's an old saying in our business: "In good times you should advertise. But in bad times, you must!"

Of course, a guy that owns an ad agency would say that.

But once you get around the obvious sales pitch, it's really true. At Amplifier Advertising, we advise all of our clients that advertising is like working with a stockbroker. Among other things, advertising is investing in a brand's future. Sure, everybody wants a return on their investment, and yes, I certainly recognize the desire to want a return sooner than later. But the stock market frequently doesn't work that way. Neither does the marketplace. The best type of brand strategy is one that plans for the long haul. This type of advertising doesn't go away when things go whack with the economy. In fact, it increases.

For example, we're in the worst economy since the 1930's, and what is Allstate Insurance doing? My sources tell me the company is increasing media buys. They're spokesperson, Dennis Haysbert, is telling us we're in the worst economy in 70 years, but that we can get through it. And we will. And Allstate is going to help by doing such and such. In fact, Dennis tells us that Allstate understands challenging times because the company started in the middle of an economic depression back in 1931.

This is pretty smart marketing. Allstate is empathizing with the consumer while they're selling. They're also taking advantage of available media time and planting long-term seeds. Even though life is full of change, people don't like change. And in future months and years when customers think of insurance, they're going to have top-of-mind awareness and preference with the company that never went away in the marketplace. So, while other insurance companies are cutting back on advertising in the same of saving a buck because the country is in economic flux, Allstate is actually gaining more market share.

Think I'm wrong? Think again, Coke, Tide, McDonalds – they're all number one in their respective brand categories and they never, ever stop advertising. In fact, I've noticed that as the economy sinks lower, the billboards for Coke seem to increase. After all, what's more American, more comforting than a Coke? It's strategic thinking like this that causes Coke products to outsell Pepsi products 17 to 1. And while American car companies are cutting back on ad budgets, another car companies like Hyundai are getting serious consideration from new customers by having a constant media presence with empathetic messages about fuel costs and the economy.

Of course, there's a Catch-22 to all of this. Right now, investors are telling their brokers: "Yes, I know I should buy stocks when the market is down and prices are cheap. But I don't have the money." It's the same concern with companies. In theory, they'd like to keep advertising, but in practicality, cutting that ad budget is saving tangible dollars. Here's the solution, avoid the Catch-22 altogether by simply considering your ad budget as untouchable and staying the course. In fact, even increasing it would be smart. I fully realize that's much easier said than done. Especially for smaller companies with under seven figure ad budgets. But when it comes to consumer goods and services, remember, people gravitate to what's constant. It's simple human nature. And nothing serves a brand better than consistency and even empathy to the world around us.

In good times, you should advertise. But in bad times, you must!

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