In most instances, the economy is viewed in extremes. It is either doing extremely well or depressively poor. In actuality the economy does ebb and flow and does have its extremes, but not always to the extent portrayed through the various media outlets the public views.
That being said, a slow or “sluggish” economy is the best opportunity any small or mid-size company will have to boost sales and gain market share. In the advertising world, two significant events happen when the economy down turns. The first is the large corporations stop or significantly reduce their advertising efforts and as a result media companies suffer because many of these companies are their largest advertisers. This forces the media companies to reduce rates and willingly open themselves up for negotiation on rates.
Large corporations can afford this type of advertising reduction because they have such a strong brand. The brand alone can help them weather the down turn without significant effects. The small and mid-size companies cannot. Either there is not enough recognition of the company within the public eye, or even worse no one knows who they are at all. You can have the best products or service in the world, but if know one knows they exist it doesn’t matter. In an economy of slow spending the unknown quickly disappear from the marketplace.
Smaller businesses are always reluctant to spend on advertising due to the multitude of expenses associated with it. In many cases, 80-90% of all marketing budgets are spent on media, printing and other deliverable costs. 10-20% of budgets are spent with advertising professionals who understand the importance of creating the right message, visuals and concepts to get the public to respond. You can create and concept the best marketing approaches all day long, but you must also produce and deliver them. When 80-90% of your budget sees a reduction in cost, the opportunities to start branding and gaining market share are significant. Your budget can do even more in a sluggish economy, it is also the most effective and affordable way to gain market share.
For those who are looking to whether the storm, good luck. For those ready to see significant growth in what is perceived to be impossible, be bold and gain, gain, gain. Not only does this approach work, Glint Advertising and Design was founded on it. Visit www.glintadv.com to learn more about our agency or drop us a line and discover how we partner with companies looking to gain market share and become the leaders in their industry.