Marketing Doesn’t Cost

This may sound counterintuitive, yet​ a company should advertise more when business is slower than desired. No brand has ever grown but cutting its spending.  This isn’t an opinion, it​ i​s a proven fact.  “In the 1920s, Post was the category leader in the ready-to-eat cereal category. During the Great Depression, Post cut back significantly its advertising budget and rival Kellogg’s doubled its advertising spend, investing heavily in radio and introducing a new cereal called Rice Krispies, featuring “Snap,” “Crackle” and “Pop.” Kellogg’s profits grew by 30% and the company became the category leader, a position it has maintained for decades,” wrote  Brad Adgate in Forbes.

Repetitive and consistent branding sets your business apart from the competitors.  When companies cut back their ad spend it is easy for them to lose their “share of mind” for current and possible future sales.  The old saying is true, “out of sight, out of mind.” An increase in the share of voice can lead to an increase in the share of the market.​ A downturn, recession, or even lockdown is the perfect opportunity to set a company apart. ​ In the 1990-91 recession, Pizza Hut and Taco Bell took advantage of McDonald’s decision to drop 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%.

Marketing doesn’t cost – it pays.  And it pays long-term.