Times are tough. Once again, the UK is seemingly heading towards a recession; food, petrol, gas and electric are all on the rise and people are cutting back left and right to save every penny they can. Understandable, but cutting back on your marketing spend is not the best move.
Marketing spend is often the first thing that gets cut during an economic crisis. It was seen in the 2008 recession, the COVID-19 pandemic and if trends continue the way they are this will be the case in this incoming recession. However, Studies found that 60% of brands that increased their media investment during the last recession saw ROI improvements.
Below are some additional reasons as to why you should continue or even increase advertising spend during an economic slowdown…
1. Gaps in the marketplace will begin to emerge
As you may be weighing up the pros and cons on whether to spend on marketing, your competitors are doing the exact same thing. If they decide to pull their spend, this gives you an opportunity to gain the higher ground that you might not have been able to do previously, putting you in a better position once the economy improves.
2. Cost of advertising typically drops
Advertisers and businesses will typically (but not always) lower their rates to make themselves more competitive and desirable. Lowering rates creates a "buyer's market". What's the quickest way to do this? Lower prices.
3. Better brand perception
Spending confidence from consumers and businesses alike is generally down.
Brands that increased paid advertising saw a 17% rise in incremental sales, those that cut spending risked losing 15% of business to competitors that boosted their spending.
“When times are good you should advertise. When times are bad you MUST advertise.”
Through good times or bad, Databroker are always on hand to help. Source high-quality marketing data by job function, industry, channel, volume, and geography.
Don’t leave it until it’s too late. Contact us today and we will be happy to help with any of your marketing requirements.