The following guest post is by Phil Brouillette from Time Warner Cable Kansas City’s monthly Newsletter June 2009:
How many times have you heard “you should continue to advertise even in a soft economy?” Chances are you have heard it more than a few times and most likely you have heard it from a media and/or advertising sales rep. Though it could be viewed as a self-serving recommendation, a recent study suggests that reduced advertising can in fact negatively impact consumer perception of your business.
The latest Ad-ology Research study finds that nearly 50% of U.S. adults “believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling.” It also finds that a vast majority of the public perceives businesses that continue to advertise as being competitive or committed to doing business.
It is without a doubt a unique environment for most of us in business today. But there are opportunities out there. I recently went back through the book The 22 Immutable Laws of Marketing by Al Ries and Jack Trout. I landed on law #15: The Law of Candor. Simply stated this law says that when a business starts a message by admitting a problem, consumer minds almost instinctively open up. Once the mind is open, you as a current advertiser, have the opportunity to insert a positive. The positive should be your selling message on how the current environment can benefit them.
If you plan on stayng in business, please don’t sit this one out until things get better. As C. Lee Smith, president and CEO of Ad-ology Research states, “it is critical to advertise in the current economic climate to maintain long-term positive consumer perception of your brand.” As their study found- “advertising appears to play a key role in consumers’ view of how a business is doing. By not advertising, business may be be sending a warning signal to current and potential consumers.” Be wise with your budget, but make sure you are still inviting people to do business with you.
Phil Brouillette is a Local Sales Manager with Time Warner Cable Media Sales.
