When times are tough! 3. You could trim your ad spend – but take care!
As input costs rise across the business, and customers become more reserved in their spending, a review of your company’s financial health is inevitable…it’s good business-sense!
With other areas of the business already feeling the strain, often the marketing budget is an easy target for your finance department to slash.
But, while achieving short-term relief from your Finance Director’s wrath, this could prove costly to longer-term business success. Here’s why…
“When times are good, you should advertise.
When times are bad, you MUST advertise.”
Share-Of-Voice (S.O.V.): the percentage exposure of brand advertising that your customers see/hear versus the competition.
Why is this an important metric?
Because there are considerable empirical studies – clear evidence that proves that share-of-voice is directly related to the perceived quality of a product offering.
In B2B sales, QUALITY also means the degree of RISK associated with purchasing a particular brand.
A good indicator of financial strength and brand security is to continue advertising in a depressed market.
Again, it makes good sense, the louder your shout, the more likely your customers will hear and respond to your brand messages.
So why, when times are tough, and there’s pressure on sales, do many think this is a good time to stop advertising, to stop being heard – often before a drop in sales revenue is seen?
All you are doing is playing into your competitor’s hands:
You stop spending and go silent.
Competitors keep spending and get louder.
Silence is anything but golden!
Want some strategic or creative ideas to keep your business front-of-mind through challenging times?
Contact me to discuss our flexible, yet industrial strength approach to marketing.
To read part three…click here!
‘When times are tough, you could trim your ad spend – but take care!’