brand marketing blog

Back in May last year I blogged about how smart marketers that increase their spend during recessions get big paybacks during the upturn.

There was an interesting article in Stop Press yesterday Titled 'Marcomms Sector Continues to Shiver in Economic Climate'. The opening paragraph reads...

"New Zealand’s marketing and advertising sector continues to feel the effects of the Great Recession, with the latest results from the MYOB Business Monitor survey showing 20 percent of Kiwi firms have cut their marketing budgets over the last six months."

Now many business owners and marketers might get depressed about this. But if you read my earlier blog post, you will see that this presents one of the greatest marketing opportunities available to any business right now.

The key message that I tried to put across to readers was that a study of the 1990/91 recession by McKinsey, revealed that companies that increased their marketing spend during a recession were the only ones whose profits rose substantially when the economy recovered.

In addition, according to the Chartered Institute of Marketing, a Hillier analysis of 1,000 companies from PIMS (Profit Impact of Market Strategy) database after the 1990-91 recession showed that companies that increase spending in a recession, recover three times faster.

Don’t follow the pack – show your market leadership and take advantage of this opportunity. After all, it only comes around when there is a recession. Media placement has never been cheaper, with media owners begging clients to buy space. Today you can negotiate an unbeatable deal and get more exposure per dollar. Plus there is less competition because your mate down the road just shut his cheque book.