The fears of an economic recession are coming true – accelerated by the global outbreak of Covid-19 we all face. Many businesses are going to face harsh times, but some will make it through and come out stronger. Because they’ll keep on advertising their services and products. For some companies, marketing is the first thing to cut back on during a recession. But a lot of these businesses are making a mistake.
After the credit crunch in 2008, ad spending in the U.S. dropped by 13% in general, with a 22% fall in radio advertising (second after newspapers), and only 2% in online advertising. But studies have shown it’s a good idea to keep advertising during a recession to power through it and reap the benefits once it’s over. Some even suggest increasing your advertising efforts to keep growing and get the edge over those competitors who reduce advertising or pause it altogether.
There are several reasons to support an increase in advertising, including:
- The competition is usually lower during a recession, with lower noise levels. It’s easier to get through to your audience. Plus, it’s also a good time to innovate.
- You can show your customers you’re a stable company that has its ways to cope with a recession.
- The cost of advertising usually drops.
- Companies that reduce their ad spend lose their share of voice in their category, which leads to losing their share of the market (and ultimately, profits).
Now might be the time to look into programmatic audio ads. With their cost-effectiveness (they’re much cheaper to produce than video ads), targeting options available today, and increasing performance, they’re a great way to engage listeners and keep them thinking about your brand, getting them ready to buy from you when all of this is over.
Read more about why advertising is essential during a recession and how some companies (including Amazon and Pizza Hut) succeeded by doing so in 2008 in this article.