The Importance of Advertising in ANY Economic Climate
As we slowly start to climb out of the recession that we in Alberta have been experiencing, you may find yourself wondering if it’s time to start advertising again. The answer is, YES, and you never should have stopped!
Research shows that cutting advertising spending to increase short term profits doesn’t seem to work. More importantly, the research also shows that a moderate increase in radio advertising in a soft market can improve market share. There is a large body of evidence showing that a larger market share generally leads to higher return on investment. Radio advertising directly affects brand ‘awareness’. It makes the advertised brand more top-of-mind among buyers. It also tends to amplify the relative perceived quality of the brand, which in turn increases the brand’s perceived value for money – which as you know, is and was important in these tough times.
A great example for this is Kellogg’s during the Great Depression. Before the Dirty Thirties, Post Cereal was the leading brand in convenient breakfast foods. When the Great Depression hit, Post cut back on almost all advertising and marketing, very quiet in the marketplace while Kellogg’s saw an opportunity, seized it and increased their marketing efforts by more than double. Kellogg’s marketed that they were not only providing healthy choices for breakfast for adults and children alike, they also marketed that they created another shift in the factories to create more jobs during this time of hardship. With this wise marketing move, it showed consumers that there was a reliable constant in the time of such uncertainty – created a comfort. Now, when you think about cereal, who do you think of? Kellogg’s comes to mind first, still even 90 years later.
What the Kelloggs/Post example suggests is that when companies continue to advertise during a recession, they keep their names in the minds of consumers, so that when customers do have money to spend, they’re more likely to turn to the brands they readily remember. And that is where we are at now in Grande Prairie!
If you’re interested in getting your company’s name out there, set up an appointment with me and we can design a plan that will ensure you are always at top of mind to listeners and buyers alike.
97.7 Rock | #200, 9835-101 Avenue Grande Prairie
780-539-9700 | www.977rock.ca