Advertising Can Work In A Recession

I hear advertisers these days say pretty much the same thing; "My advertising just isn't generating nearly the same number of leads as it was a couple years ago."

Then they begin to doubt the viability of the mediums they are using, or the advertising message they are promoting.

And it may just be that the mediums are not right for the target audience, or that the message is off key for the market. It is my guess however that more often than not, it is simply the fact that in a down market, there are fewer people willing or able to take advantage of their offer, so the same message and media schedule is simply going to yield fewer leads.

Its just a numbers game. In good times for example, about 14% of the population will replace their vehicle with a brand new one, or a newer used one in a given year. And this is often times followed by additional spending on insurance, aftermarket upgrades, and road trips. All which stimulate the economy further.

In good times 20% of the population will move their residence. Which also statistically means that within 6 months of a move they will make major purchases on home furnishings, appliances, remodeling and home improvements. All which stimulate the economy further. And believe it or not, within the first year of a move 20-25% will also purchase a new vehicle or RV!

Without these major purchases occurring in a slower economy, it's no wonder the market is down for everything else, as the residual spin off effect is not trickling down.

Lansing Michigan for example was home to Oldsmobile, and back in the mid 1970's 25% of every working adult was directly or indirectly tied to the prosperity of and the ability to employ people at Oldsmobile. When Oldsmobile began losing market share, and jobs, the local market really suffered, because those 25% no longer had the income to buy discretionary goods and services from local merchants, which meant that their marketing efforts became less effective, causing them to buy less media, and further exasperating the local economy.

But there is hope, a lot of of it, and proof that doing the right advertising in a slow economy is not only effective, but very much the right thing to do. Explore for yourself some of the proven methods and messages that other successful advertisers have discovered.

When to Advertise, and What Good Advertising Feels Like

Q. When do you need advertising the most?
A. When the market is down and things are slow.

Q. When do you need light?
A. When it's dark.

Good advertising creates leads, and leads create sales. And if you need sales now advertise and promote now.

There is a market today for your products, it just may be a little smaller so you will not realize the same ROI in a boom economy, but if you can still generate sales.

What's the alternative? Turn off the lights and wait for it to blow over. The problem is, every day you go without top-line sales revenue, you eat further into your reserves, and get closer to scraping bottom.

Take control, look for opportunities, trends, new ideas, new markets, new uses for an existing product, new ways to bundle or package your product that works better in a slow economy. Stay focused on the future and ways to get closer to your customers and solve their problems.

There are always opportunities, you just need to find them. Conduct a S.W.O.T. analysis, a focus group, a brainstorming session. Find the unmet need, that new or developing niche, and recreate yourself if you have to.

Good advertising connects with people, and offers hope, a bargain, a value, an escape, or a solution. Good advertising makes people feel good about themselves, or about you.

Good advertising makes people feel something about your brand, or about doing business with you. Good advertising fills a mental or physical void. It may make them feel smart, or happy, clever, cool, sexy, attractive, successful, satiated, above the crowd or in the know. But the more it makes people feel, the more it makes them spend.

Why do people do all the crazy and interesting things they do? Because they want to feel, they want to connect, they want to belong, and they want to be accepted, recognized, rewarded, or acknowledged.

A good brand experience, product or service fills these inate human needs. And a good ad tells them where and how. And maybe without even saying it. The implied message can be much more powerful than the stated.