Recession, credit crunch, slowdown – these are bywords of the moment and you would be forgiven for thinking that we’ve got to tighten out belts and prepare for hard times ahead.
The natural inclination for some businesses might be to scale back on marketing activities in an effort to save money. But, last week it was reported that two of the world’s biggest advertisers, Unilever and Procter & Gamble, would not cut their marketing budgets.
It’s been proved time after time that a recession (and let’s not forget we’re not actually technically in one yet!) is a time to increase your marketing budget.
Why? Because, in a downturn, the shortsighted companies will reduce their advertising spend allowing businesses that maintain or increase their spend to steal market share from them. Also, advertising space and marketing services may reduce in price so that the same advertising spend buys you more media.
One possible way to cut cost whilst increasing ‘share of voice’ would be to employ freelance graphic designers and marketeers rather than using an agency. Freelancers often outperform agencies in quality, price and timeliness. To put it bluntly, a freelancer could charge you £35/hour for what an agency would charge £150/hour. One client of mine recently commented that agencies seem to charge you for sneezing!
So, far from being a negative experience, the recent “bad” news on the economy may present us with an unparalleled opportunity!
What is your experience on the changes in marketing spend in your business?