03Marketing in a recession

The FT adds its voice to our call for companies not to panic...

Regular readers may remember that last month we were encouraging companies to maintain and develop their advertising campaigns during the credit crunch. And, as it turns out, we weren’t alone in our philosophy of taking the bull by the horns and keeping your name in the public eye during these bleak times.

The Financial Times has just begun its own awareness campaign on the subject, using a fantastic billboard advert with the strap-line ‘Global Downturn. What’s the first mistake businesses make?’ – which, if you’ve missed it, you can see here.

A CALL TO ARMS

But aside from a very astute advertisement, the FT has also put together a great website (available here) that adds further weight to our argument and acts as a further call to arms for all companies – keep advertising or you might just end up as the next victim of the crunch.

The home page of this mini-site summarises the position very well: “Faced with a downturn, many businesses cut advertising and marketing spend. But it's their biggest commercial mistake.

“In every recession of the past 90 years, independent studies show that the businesses who increase their advertising spend are the ones who survive the tough times and thrive afterwards. That's why we're still advertising. Make sure you are, too.”

A RISE IN PROFITS

The ‘independent studies’ they mention certainly make for interesting reading – and make advertising in this period of economic unrest seem even more essential. They outline how companies that keep advertising during recessions are the only ones to see a rise in profits, with any short-term savings through stopping a campaign dwarfed by the long-term profit raised through maintaining it.

The website also cites several examples of companies that have succeeded by deciding to maintain their advertising campaigns during economic upheaval. And the list of big winners certainly is impressive, with names like BMW, Renault, Kellogg’s and Barclaycard basking in the glory of a wise marketing strategy. What business wouldn’t want to be in that illustrious winners’ circle?

ADVICE OF THE EXPERTS

And whilst we’re always confident of our knowledge of the creative, communications and marketing sectors, it is nice to have vindication for our approach to the wider marketplace – especially from a source as well respected by the FT!

So, if you’re heeding the advice of the experts, then give us a call and we’ll give you all the support, advice and guidance we can to help make a name for your company.