Why It’s a Mistake to Cut Ad Spend When Times Get Tough

Cost reduction is a conversation no business enjoys having. As economically savvy decision-makers, we understand the value of keeping a pulse on your budget and forecasting to safeguard against a recession.
Advertising is often the first area to cut when considering scaling back costs. However, advertising consistently can safeguard your company, helping you endure downturns without much trouble.

Why You Shouldn’t Cut Ad Spend During Downturn

Advertising is an investment in your business’s future, helping you demonstrate stability and reach those who can benefit from your products or services. Economic downturns don’t impact everyone equally, so in times of trouble, you can narrow your focus to those who need your business most or still have money to spend.

Fewer Ads Reduces Visibility

Reducing ads means less visibility for your brand when brand recognition matters most. Businesses aren’t the only ones considering scaling back. Consumers are also examining their budgets and thinking more critically about where to spend their money.
Brands that established themselves and left their digital footprint on the advertising arena are likely to retain customers and attract new ones. Reliability is a core selling point many consumers consider when making spending decisions. You don’t want to appear like your business has fallen off the map during difficult times, as you’ll need to increase spending to re-establish your visibility.
Consistency matters when it comes to being at the top of your clients’ minds and can increase revenue by as much as 33 percent. Ensure your brand retains stays in your customers’ minds, so when things get better, you don’t need to work as hard to build back your recognition.

Less Competition Makes Greater Impact

Less competition can increase your market share and stretch the impact of your ad space. A thinner advertising landscape means more prime real estate at a lower cost. Capitalizing on reduced competition and discounts within common advertising platforms will make your marketing budget go far and fill the space left when your competitors cut their ad spending.
Following the 2008 recession, 60% of companies that increased their ad spend realized a more significant ROI, a 17% spike in sales, and favorable click-to-conversion rates. The limited advertising landscape is a significant factor in why marketing impact increases when the economy is downturned.
Take advantage of the current economic landscape and the fact that advertising is down by seeking out ad deals, connecting with marketing platforms to inquire about discounts and special offers, and getting your brand out there.

Impacts Your Ability to Recover

While careful budgeting and safeguarding are excellent strategies, you don’t want to stall your business’s recovery by over-focusing on the immediate budget. Marketing impacts the future significantly. When businesses must rebuild their marketing presence, it’s as if they were starting from the ground up. Pausing or even stopping ads harms brand awareness, reduces your presence in search engines, and can set back years of marketing progress.
Rather than eliminating or reducing your advertising budget, look for areas where your team can be more efficient and cost-effective. Consider restructuring ads to consolidate your budget. One excellent tip for reducing cost while maximizing ad reach is combining audio and digital ads. Combined advertising effectively reaches a broad demographic while making your ads stand out on multiple mediums. Best of all, consolidating saves you valuable time and money without setting your marketing efforts back. 

Misses Sales Opportunities

Businesses can still prosper no matter the economic landscape. Sales are the foundation of our work, and ads help you generate revenue. Don’t miss revenue growth opportunities by reducing ad space at a critical junction. Consumers will still purchase
Consumers are still clicking and still buying despite threats of a looming recession.

Tips to Save Costs on Ads

Instead of generalized budget cuts, economic lows are a time to focus and fine-tune your marketing efforts. One way to do that is to focus your marketing efforts towards your core group of customers. That way, you can spend more efficiently without sacrificing your visibility.
Get to know your core demographic and understand their buying habits, then use that to personalize your ads or place them on their preferred platforms. Developing a curated rotation of personalized content helps you reach your most likely candidates without breaking your budget. Forbes found that 71% of consumers were more likely to purchase items with ads personalized to them. Leveraging the power of personalization can take your business far by maximizing ad reach on a shoestring budget.

Recover Quicker by Continuing Advertising

Economic downturns are temporary. Don’t opt for a long-term solution to a short-term problem without fully considering future impacts on your business. Protecting your advertising budget during economic uncertainty will ensure your brand stays engaged with its consumers, limiting the impacts of a possible recession.

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