It’s funny to me how it seems that the first thing companies tend to do in economic hard times is “trim” (PC word for cut) their marketing budgets. I can understand that need to cut back spending during downturns but to cut back marketing dollars seems counter intuitive to me. When budgets tighten, sales become even more elusive to capture so you would think that your marketing efforts would strengthen not weaken.
Instead of cutting the dollars that help generate revenue, cut the superfluous spending. Nix the corporate trips and golf outings. Wave good-bye to the retreats and luncheons and start looking at marketing budgets as an investment not a liability. In a recent poll taken by B-to-B magazine, 66% of advertising executives said their clients were either cutting or reallocating their budgets elsewhere while 27% were actually increasing their budgets during these hard times. No that’s not a typo, 27% are actually increasing their budgets. Why? Because your competition could be on their heels. As Bob Liodice, president of the Association of National Advertisers, says “In an economic downturn, this is the time for marketers to capture a greater share of market by investing robustly in a well-defined marketing mix. Your competition may be letting their guard down”.
In fact, 40% of the previously polled ad execs admitted that budgets would increase in 2009 showing confidence that economic downturn would be short-lived. This means that in the big picture, the 27% of firms that increase their budgets now, will be in the drivers seat in 09 while the competition plays catch-up. When it comes time to evaluate your current marketing budget keep this in mind; Do you want to be a leader or a follower?
