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When ads appeal only to customers that are in the market for your product today, ads are an expense. When ads educate consumers as to why your business is the best one to use when they need your product, ads become an investment. When consumers build an image in their mind of your business as being the one to use not now, but when they need you, you are putting dollars in the bank of brand equity. These consumers are not waiting for a sale from your store; they are simply waiting for the moment when they need what you have to offer. Don't try to convince people that you have the lowest price. Few will believe you, and those who do will be easily swayed by any business claiming to have a lower price. You will spend a fair amount of money for every new customer your advertising attracts. Look for those who will become loyal customers by explaining everything that is unique about what you do that no one else can say. Be sure to let your customers know that they would be crazy to do business with anyone else regardless of price!
Advertising in a Recession Let's examine what happens when businesses everywhere start to cut their advertising budgets. First, advertising becomes much more affordable as everyone selling advertising has more inventory available. Second, your ad budget goes much farther as you have a greater share of voice. If your competitors cut their ad budget in half, your advertising becomes twice as powerful! It will cost you far less to rise to the top when times are slow. While all of your competitors are sitting on the sidelines waiting for things to get better, start winning the hearts and minds of consumers so that as soon as they need your product, they will be beating a path to your door. 
| Questions & Answers
How much should I spend on advertising during a downturn in the economy? |
