“I have yet to see any study that proves timidity is the route to success. Studies consistently have
proven that companies that have the intelligence and guts to maintain or increase their overall
marketing and advertising efforts in times of business downturns will get the edge on their timid
competitors” Senior VP, J. Welsey Rosberg Meldrum & Fewsmith
If you’re wondering if it’s a good idea to advertise in a recession this article shares 4 reason why it’s perhaps the best time to advertise your home improvement business however there are a number of caveats.
Whilst generally unwanted by business owners slow downs are inevitable and history tells us a slowing economy leads to a decline in marketing spend by some businesses.
From a consumers perspectives, those with money tend to do OK, because they get discounted deals (more for their money) and recessions tend to sort the wheat from the chaff. By this I mean poor businesses won’t make it through.
In a recession buyers take on less perceived risk and turn towards companies they believe they can trust, who offer most perceived value. If you or your competitors aren’t clearly providing perceived value you’ll lose to those who do.
Relevancy and quality are the keys to survival and it’s one of the main reasons now isn’t the time to stop or be timid, because many studies show there’s an opportunity to increase sales and build market share, during a recession and afterwards. Here’s several reasons why :
- Recession provide the chance to take market share and also project to potential customers that your business is stable during challenging times.
- In terms of Facebook advertising, the cost will drop during a recession due to less businesses bidding for space on a viewers feed, less competition means more attention.
- If you cut back on your advertising, you’ll lose “share of mind” within your local market
and open the door for potential competitors to replace your position.
- On the contrary, if you continue, you’ll increase your “share of voice” which typically
leads to an increase in “share of market.” An increase in market share results, with an
increase in profits
Businesses that maintain their ad spend and adapt can get a long-lasting boost in sales and market share. Here’s a good example from the 1990-91 recession, Pizza Hut and Taco Bell took advantage of McDonald’s decision to reduce its advertising and promotion budget. As a result, Pizza Hut increased sales by 61%, Taco Bell sales grew by 40% and McDonald’s sales declined by 28%.
In summary some of your competitors will be timid. Therefore if your advertising clearly demonstrates perceived value by taking the time to fine-tune and continue your marketing efforts, your business will reap the rewards.
If you’re thinking of advertising your window or home improvement business we specialise in Facebook because it provides access to the largest concentration of homeowners in all areas of the UK. Add to this the ability to track and measure engagement it’s one of the best marketing tools whatever the economy.
If you need help with your Facebook advertising get in contact, we’ll help you get great results like these window businesses using our Facebook advertising system in their business.