If you’ve been in business for a while, you know how tough things can get in a recession. Though we’re still in the early stages of this economic downturn, it’s best to be prepared for the worst. What does preparing for the worst entail? For some, it’s cutting costs wherever you can. For others, it’s making good financial decisions for the sake of your business’s success.
The highs and lows of our economy dictate how we spend our money. As business owners and customers, we’re inclined to go into a protectionist mode with our funds. However, the saying “You have to spend money to make money” still rings true, no matter the circumstances.
Media Link, Inc. has been around since 2001, and we’ve seen our fair share of recessions, from 2002, 2008-2009, and most recently, 2020. We’ve noticed, with each one of these periods, the first reaction business owners have is to cut their advertising, because they don’t need advertising to keep the lights on. But even if cutting advertising seems like a good idea at the time, it isn’t a good idea in the long run.
Why Do We Advertise?
People need to be reminded your business exists. If they hear about you less, they’re going to think about you less often. Then when they need your specific service or product, they may think about one of your competitors before they think of you, because these competitors worked to keep their name and branding in front of perspective customers. This top-of-mind awareness (TOMA) is what advertising is about and it is the most effective way to attract people who need your product or service at the time they’re ready to make that purchase.
While word of mouth can be effective, this method reaches far less people. If customers are sharing a great experience, they may share their experience with a few people. However, if your customer had a negative experience they’re much more likely to share this experience with many more people and usually pretty quickly depending on the circumstances of the negative experience. However, in both scenarios how fast news spread and what is spread about your company is out of your control. With advertising, you decide where, when and how to shine the spotlight on your business.
Advertising is an investment. It has an accumulated effect, so it doesn’t happen overnight. This is why too many businesses make the mistake of cutting advertising when the economy takes a downturn. However, if you let it run its course, you’ll see the benefits overtime.
In a recession, you might see your sales start to decrease. But without advertising, the decline will be even steeper. Even in a recession, people are still going to spend their money on products, even if they’re tightening their purse strings more than usual. It’s just a matter of where they spend their money. By advertising, you’re increasing the odds of your business being their choice of where.
How To Stay Afloat In A Post-Pandemic Economic Downturn
Advertising isn’t all or nothing. You do what you can, however big or small, to stick with it. You don’t need to go above-and-beyond with advertising in a recession, but you do need to be smart with how you present your business.
This world has changed. In this post-pandemic society, brick-and-mortar doesn’t usually cut it, especially with younger generations. If nothing else, your online presence (website, social media, etc.) should come first. Potential customers will research you online, and if they can’t find you easily, or if they don’t like what they see when they do find you, then they will go elsewhere.
It’s become second nature to search every business you want to visit, before you hop in the car and drive there. Now we want to know if it’s a place worth our time and money, especially in a rougher economy. In this period, we’re a little more cautious about how and where we spend our hard-earned dollars. Proving your business is worthy to your potential customers is step one in staying afloat during these hard times and advertising helps you get this message across.
Creating A Recession-Friendly Budget With Media Link, Inc.
Like we said, our advertising agency has existed through three recessions. We know our way around an economic downturn, and we can say with confidence that we will help your business navigate this one.
A lot of people believe advertising agencies are too pricey, but our team at Media Link are consultants, not salespeople. “Just like your accountant is there to help you with your taxes, your advertising agency is there to help you effectively reach your current and potential customers,” says Media Link President, Natalie Linville-Mass. “If you don’t understand the metrics to really see who you’re reaching and what’s going to be the best option for you to consider, then check into an advertising agency.”
At Media Link, our plans are designed specifically for your individual circumstances. We can see what best works for you with the funds you have available, and we will be there with you every step of the way to ensure sure we are doing the most we can to keep your business at the top.
If you’re reading this blog and realize you’re at a point, where you need help with this part of your business. Please reach out to us to find out how we can help. Our first appointment is free. You can call us at 309-786-5142 or email us at info@medialinkinc.com to set an appointment.
