4 Compelling Reasons to Keep Advertising During the Pandemic

Amidst the uncertainty and the huge negative economic impact of the spread of COVID-19, we're all a bit uncertain where the market will be tomorrow, next week, let alone next month. Companies are laying off employees by the tens of thousands. Retail businesses, restaurants, schools, and even religious institutions are shutting down to help stop the spread of the coronavirus pandemic.

The economy and stock market are taking record-breaking losses. Companies cutting costs where they can just to survive.

Naturally, one of the first large business expenses often cut during times like these during the Great Recession, during the H1N1 swine flu pandemic, and even way back during the Great Depression are advertising and marketing budgets. It just makes sense right? After all, advertising and marketing budgets account for 20% - 50% or higher of companies overhead.

With such obvious hits and crippling blows to the economy, and so much uncertainty as to when we'll even hit bottom, (if we ever do,) isn't that what companies should be doing?

Well, it may seem counter-intuitive, but the answer is an astounding "no!" And I'm not just saying that because my business is a digital marketing agency. Though I'm admittedly a bit bias, I pride myself on utilizing data to make business decisions. And there is a solid argument to keep advertising and marketing in even an extremely down economy.

There's a great Forbes.com article that came out in Sep of last year that speaks to this...

Key Takeaways:

1. "...There have been a number of studies going back nearly one century that point out the advantages of maintaining or even increasing ad budgets during a weaker economy. Those advertisers that maintained or grew their ad spending increased sales and market share during the recession and afterwards."
2. " Amazon sales grew by 28% in 2009 during the “great recession.” The tech company continued to innovate with new products during the slumping economy, most notably with new Kindle products which helped to grow market share."
3. " Another strategy used by marketers is changing the ad message and using short-term price incentives to match the economic climate with consumers who are seeking a good deal... Although the natural inclination for advertisers is to cut back on advertising during a recession, those brands that maintain their ad budget and/or change their messaging can get a long-lasting boost in sales and market share."
4. " Sam Walton, the founder of Wal-Mart. When asked, “What do you think about a recession?” he responded, 'I thought about it and decided not to participate.' "

Another great article that talks about the companies that thrived during the Great Depression, and why. Spoil alert...they advertised as if there was no great depression going on... https://www.imediaconnection.com/articles/ported-articles/red-dot-articles/2008/oct/how-brands-thrived-during-the-great-depression/

"Both anecdotal and empirical evidence support the case that advertising was the main factor in the growth or downfall of companies during the Great Depression. To put it bluntly, the companies that demonstrated the most growth and that rang up the most sales were those that advertised heavily."

Of course, in these uncertain times, you have to make the decisions that you feel are best for you and your business. I absolutely can appreciate that. I just wanted to share the above highlights from two great sources for you to weigh into your decisions in general for advertising/marketing during these uncertain times.

Let me know your thoughts in the comments below. Are you decreasing/increasing your advertising and marketing budgets in the wake of COVID-19? And why?