Seems like when the going gets tough, the marketing budget is the first thing to get the axe. And, at first glance, the logic makes sense – after all, when money’s tight, isn’t it more important to keep the business you already have instead of dropping buckets of cash chasing new clients?
Well, yes and no. According to a recent article in The New Yorker, there’s a lot to be said for boosting your advertising and marketing budgets during a recession. Financial writer James Surowiecki (one of my hands-down, favorite financial writers) points to companies like Kellogg’s, Kraft, Hyundai who have used previous economic downturns to gain an edge over the competition. It seems like while the other guys were playing it safe by cutting marketing dollars, these former underdogs took a gamble and launched big marketing campaigns and new products instead.
And, according to Surowiecki, it worked. Sure, it may seem “safe” to slash your advertising dollars, but companies who keep reaching out to consumers during a recession may just come out on top when the economy gets back on track.
Good news for people in marketing and advertising, to be sure. But, whatever business you’re in, it’s an interesting look at how to gain an edge over the competition.
It’s definitely worth checking out. Read the full article here and let me know what you think – we love to hear from our readers.