Now is NOT the Time to Reduce Your Marketing and Advertising Investments

If you think the economic slowdown or recession (yes, the dreaded ‘r’ word) forces you to reduce your investment in advertising and marketing, you’ve adopted a flawed line of reasoning.

I say this because it’s a proven fact that the best time to pick up market share is in a recession, when—as budgets tighten—your competitors become more vulnerable.

According to a 2005 report from Penn State’s Smeal College of Business, certain prescient firms see the downturn as an opportunity and increase their marketing spending. Consider these examples: Proctor & Gamble pushed Ivory soap during the Great Depression, Intel launched "Intel Inside" during the 1990-1991 recession and from 2000-2001, Wal-Mart check-mated its competitors with their “Every Day Low Prices” campaign. You may recall those campaigns because, oh, their messages stood out in a less competitive climate.

Just recently, Kraft Foods and Kellogg Co. told analysts they will boost their ad outlays despite drops in net income. According to Advertising Age, they instituted broad-based price increases in 2007, responding to higher commodity costs. Kellogg CEO David MacKay was quoted as saying that the company is sufficiently strong to withstand some consumers migrating to private label brands.

If you’re among the trend followers who are considering reducing your investment in advertising and marketing, take a moment to consider or measure what you’re really cutting out of your budget. Are you just cutting costs? Or, are you cutting audience share, slashing your messaging and slowing your hard-earned momentum? Marketing and advertising budgets seem like an easy place to eliminate costs, but in the end, the only thing you’re cutting is your business.

A slowdown or recession doesn’t necessarily equate to long term economic disability. We know the economy will rebound. It always does. The aggressive positioning you take today will pay off tomorrow.

Those who maintain marketing and advertising spending will be positioned as leaders when the bust goes boom again. Don’t plan to survive. Plan to thrive.