It’s an all too familiar story for those in the agency world.  When times get tough and the economy sours the advertising and media line items in many clients budgets is often the first place they look for cuts.  The decision is tactical – reduced spending gives a quick boost to the corporate bottom line.  It’s unfortunate really because the short-term gain does not help them when the recovery begins and it can, in fact, hurt them.

Studies have consistently shown that market leaders are those who market their way through a recession while other companies try to save their way through a recession.  You have to consider the long-term effects because an advertising cut-back during a recession, even if it doesn’t impact a companies current sales, will reduce their brand awareness, weaken brand associations and ultimately lead to reduced sales.  As our own opinions@trone.com economy study shows the current propensity for consumers to change brands is high.

In a nutshell, here are five of the top reasons to hold strong and continue to advertise:

1. It’s a Buyer’s Market: You will find media bargains right now.  The current economy is impacting everybody, including media properties, so it’s a buyer’s market out there and there are plenty of deals to be had.
2. Keep Customers Informed: You need to keep consumers and prospects informed of your business.  Advertising is distributed information and a fundamental part of the business process.
3. Share of Voice: If your competition trims their ad budget you have a great opportunity to capture competitor’s customers.  By staying visible you have a much greater chance of being top-of-mind when those important purchase decisions are being made.   Conversely, if you trim your ad budget and your competitors hold, you risk becoming invisible in the marketplace.
4. Share of Market: The possibility of gaining share through advertising is greater when the market is soft.  When markets expand, share gains are harder to come by.
5. Position Your Brand as Stable: Staying visible in the marketplace maintains the image of stability.  In a chaotic environment many consumers become skittish and you need to maintain a positive, strong image.

Advertising needs to be viewed as an investment, not a cost.  Those that adopt this way of thinking will reap the rewards of their investment in the long run.  In the spirit of the new White House Chief of Staff, Rahm Emmanuel, “You don’t ever want a crisis to go to waste.”