Newsletter

Creative Corner

The Right Place At The Right Time

By Ken Jacobs, Creative Director

We are all undoubtedly wrestling with tough financial times, which can make it more difficult to remain optimistic. We see, after all, panic and fear in the faces of those around us – and not without reason. A word to the wise: do what you can to assess your situation rationally rather than emotionally.

First, take a deep breath. Remind yourself that your business has value, and that even in a recession people need what you have to offer. When budgets are tight, people tend to shop more carefully. They want to know what their options are, what the cost will be in terms of their time and their money.

Where can they get the best quality? Who will make it easy for them to do so by means of professional and timely counsel, service and support? In short, they need information. And that can make advertising in the right place and the right time very, very effective.

Imagine yourself in a room full of people. They are all speaking at once, waving and shouting to get your attention, simultaneously attempting to explain the merits of the particular products that they want you to buy. Each is selling a similar product, any of which might meet your needs, and because of the throng of voices it’s hard to hear any one of them clearly. In that environment, anyone would have difficulty making a choice.

Now imagine yourself in the same room with just one other person. This person is well dressed, attentive and professional and doesn’t need to shout to be heard. They present the information you want in a thorough and interesting manner. You, the customer, realize that what they have to offer is everything you want, so you look no further.

The company that advertises when its competitors fall silent makes itself heard, therefore enjoying much greater value from every advertising dollar they spend. They enjoy a much greater share of voice, and most often will increase their market share.

What happens after the recession ends? Over time, once budgets are redrafted, surviving companies begin to advertise again. But by then, the market share has shifted and those that stayed the course have a considerable advantage.

The companies who cut off communication with their customers in order to save some money may find that they don't have many customers to come back to. They find themselves in the awkward position of having to start promoting the business all over again. This can be time-consuming given that the return on investment for advertising – brand recognition and the building of customer confidence - can take six months or more to bear fruit. Studies have shown that the cost of regaining lost clients after a recession can actually be much higher than the cost of maintaining your advertising in the interim, so it’s really in a company's best interest to continue promoting themselves even in hard times.

While financial difficulties may require a change in a company's approach to advertising, it is important to consider the long-term repercussions to the business. Cutting advertising too drastically may save a company some money in the short term, but the potential loss of sales to competitors can be much more costly in the end.