Dos And Don’ts: Advertising In An Economic Downturn

Advertisers’ reactions to negative economic circumstances vary; some increase their budgets while others pull back. In this document by Richard Barry, you’ll get useful tips and strategies for making the most of your marketing efforts. 

The price of a 30-second Super Bowl spot ad fell from $2.1 million in 2001 to just under $2 million for the 2002 game. An Advertising Age report found that online advertising spending dropped 10% to $1.5 billion during the first six months of 2001. The study also reported a 10.4% decline in Sunday newspaper advertising and a 15% decrease in spot television ads. 

On the other hand, large advertisers are increasing their ad budgets because they see the economic downturn as an opportunity. Coca-Cola, Gillette, IBM, and hundreds of other major players — from online to retail to b-to-b — are focused on getting more customers and more business. They’re building market share by taking advantage of what their competitors aren’t doing. They’re moving forward because they realize the short and long-term value of advertising and branding. 

To help you focus on marketing and advertising in a recession, follow these guidelines: 

STRATEGIZE TO AVOID QUICK FIXES 

Opportunities for spending your advertising dollars come at you everyday. Instead of buying from the first ad rep that calls, plan your marketing strategy, direction, and budget. An economic downturn won’t be solved with 'start and stop' and 'let’s try this and see if it works' approaches. Understand the marketplace and your target audience, lay out your plan, and evaluate it on a continual basis. 

USE YOUR AD DOLLARS WISELY 

Do careful research on all media that reaches your customer profile. Evaluate all relevant publications by subscribing to them, reading them cover to cover, and gathering as much data as possible about their readership. Ask customers, sales reps, and media buyers for objective advice on advertising in different publications. 

Media buying is both science and art. Don’t lose sight of your ad campaign’s goal: reaching the right customer at the right time. Although ad deals are part of the game, don’t make the mistake of getting the biggest deal/discount/remnant buy from the least effective publication. 

DEVELOP 'L-FOCUSED' PRINT ADS 

To capture readers’ attention, print ad copy should be clear, concise, short, sweet, and easy to understand. The ad layout must get your 'unique selling proposition' across as quickly as possible by using an L-focus: 

• Large visuals. Use photography, graphics, and illustrations to draw the reader to the main point of the ad. Bear in mind that readers are bombarded by 5,000 advertising and marketing impressions a day — so your ad will have to work that much harder to grab their attention.
• Logical layout. Don’t confuse readers. Lead them from 'attention' to 'interest' to 'desire' to 'action.'
• Liberal use of white space. White space helps the flow of information and supports the design. The less clutter, the fewer distractions for the reader — and the fewer reasons to lose interest in your offer. Think of white space as added value.      

DON’T IGNORE OTHER COMMUNICATION VEHICLES 

Support your advertising with activities to brand your product or message. Branding involves every touch point between your company and its target audience. Look closer at every contact with clients from phone messages to packaging to signage. 

Go beyond traditional advertising. Use the media through press releases or articles that are written by your employees. Stay in touch to keep your audience involved and informed. Contact customers regularly through newsletters, reprints of articles, and thank you cards. Create loyalty and interest with such promotional products as candy jars, special pens, or tickets to a show. Delivering an attention-getting item or some unexpected kindness can help in addressing a complaint, building a relationship, or getting the attention of a new customer.