Advertising In A Downturn
Advertising in a downturn of the economy is a challenge.
For many clients, an advertising budget is the difference between staying open and filing for bankruptcy or worse. Forbes reports “In the aftermath of the last recession in 2008, ad spending in the U.S. dropped by 13%. Broken out by medium, newspaper ad spending dropped the most at 27%, radio spending dropped by 22%, followed by magazines with a decline of 18%, out-of-home by 11%, television by 5% and online by 2%.”
While advertising in a downturn is difficult, studies show the merchants that spent on ads were more likely to stay top of mind and showed growth. In addition, those merchants continued to show growth after the economic factors subsided.
Making Your Money Last longer
During struggling economic times, advertiser drop prices and your money actually reaches further. This ability to stretch the dollar has lasting impact when applied properly. There are many examples of one company reducing spending while others in the same category spend to gain market share. The brands that adapt are the brands that set a course for future success. Now more than ever, rate negotiation and asking for added value is solid strategy. If you don’t ask, you won’t get.
In the current economic climate, the stock market continues to rise as good news fuels optimism. For the restaurant brands adapting to carry-out, third party delivery or delivery on their own, they are seeing steady revenue.
We are focused on the success of the food industry and it’s our goal make every client a success story. Our experience and unique world view gives us the advantage in a competitive food marketplace. If you have a restaurant and need some ideas for future growth, call Propulsion today.