Thinking About Cutting Your Advertising Budget? You’d Better Think Again…
A recent study done by Ad-ology (a research firm for the advertising industry) shows that nearly fifty percent of adults in the U.S. believe that a lack of advertising by retail stores, banks, auto dealerships and other mainstream large companies during a recession– indicates that those businesses must be struggling.
These results do not bode well for all of those businesses, big and small, who have decided to reduce their marketing budgets in order to save money. Ad-ology’s study shows that advertising appears to play a key role in a consumer’s view of how a business is doing financially, and by not advertising– businesses may be causing current customers and potential customers to shy away from buying their products or services.
“It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand,” said C. Lee Smith, President & CEO of Ad-ology Research.
“Advertising not only assures consumers of a business’ reliability in a soft economy, but it can influence where and what they buy, especially when the ads address concerns about value.”, said Smith.
Cutting your advertising budget is the equivalent of committing business suicide. In a recession people are tight with their money, but they will still buy what they need and if they find your competition (who IS marketing) before they find you– Your competitor will get their business– Not you. Cutting your advertising budget may seem like a quick fix to your budget woes now, but it’s amplifying your problems in the near future.
Have you reduced your business’s advertising budget? If the answer is yes, has there been a dramatic effect on the amount of business you’ve had lately?
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