Thinking about pulling your advertising during a recession or times of uncertainty? Below is a link to a terrific article from Forbes Magazine with some insight. Spoiler Alert! Don’t stop advertising.
History is full of examples where brands captured significant market share during challenging times. One of the most notable examples is Kellogg’s Cereal. Leading up to the Great Depression, Post was the category leader in the ready-to-eat dry cereal. But during the Depression Post significantly cut its advertising budget while rival Kellogg’s doubled its advertising spend. Kellogg’s profits grew by 30% and the company became the category leader, a position it maintains to this day.
In a nut shell, the 3 main benefits to continue advertising are:
- Brands project the image of corporate stability during challenging times.
- The “noise level” in a category or industry can drop when competitors cut back on their ad spend.
- When companies cut back on their ad spending, their brand loses its “share of mind” with consumers.
Like managing a financial portfolio, there are significant opportunities during a crisis – if one has the foresight. During the Financial Crisis of 2008, Apple traded between $13 and $22. As of this writing, even in the middle of a global pandemic, Apple is $276.
Stay focused and let Bluesumac help build your brand.
Here is a link to the Forbes Magazine article, “When A Recession Comes, Don’t Stop Advertising.”
