In a time of economic uncertainty and challenges, advertising in times of crisis is a strategic necessity for many companies to make the difficult decision of where to cut spending. One obvious option often seems to be to reduce advertising budgets. However, this decision could have serious long-term consequences. It is a fallacy to believe that you can effectively reduce costs by saving on advertising. In reality, especially in difficult economic times, it is crucial to invest in and optimize advertising. In this article, we explain why advertising is essential in times of crisis.
Strong visibility in times of crisis: A competitive advantage
In difficult economic times, many companies start by reducing their costs, which certainly makes sense. The next question an entrepreneur asks himself is: “Can we afford to spend money on advertising? Shouldn’t we rather spend the advertising budget on maintaining the business?” We at ixtreme now ask you: Can you really afford to stop advertising? We see the idea as a logical reflex to hit the brakes and reduce all marketing and advertising expenditure for the time being. But is this the right way to protect your company?
The first reaction may be to cut or abolish advertising expenditure. Consumers are spending considerably less and, as a logical consequence, companies are selling less of their products. Marketing expenditure should be in line with this, right? No, if you want to retain your hard-fought market position, then this is the wrong way to go.
In a recession, it can be very difficult to look beyond the here and now and focus on the bigger picture that is on the horizon. This bigger picture is nothing other than the long-term return on investment (ROI) and market position of your company when the recession begins to abate, which is always the case eventually.
What you do or decide in your company now will determine your position after the recession. If you reduce or discontinue your marketing strategies now, you are also giving up your market position. However, if you maintain your market position and optimize your marketing measures, your company will survive these times. You will then not have to start again but can continue to build on the substance.
Germany would not be Germany if this country did not survive this crisis and get back on the road to success with diligence, drive and many clever minds.
Advertising in times of crisis: Building trust and customer loyalty
Times of crisis are uncertain times for customers and entrepreneurs alike. Through consistent and well thought-out advertising measures, companies can not only build the trust of their customers, but also position their brand as stable and reliable. Stability and reliability are very important, especially in difficult times. Continuous communication signals to customers that the company is present, reliable and committed despite the challenges. This strengthens customer retention and can increase customer loyalty.
Optimization instead of reduction
In order to use the advertising budget in a very targeted manner, it is essential to find out who your target group is and which channels they use. This is the only way to find the right tone of voice and address your potential customers in the same way.
In order to optimize your advertising expenditure, it is essential to set priorities. Targeted SEO measures on your website, but also Google Ads and an SEO-optimized YouTube channel can be major milestones in your success. Unfortunately, these are very often neglected. The content, again not only on their website, also contributes massively to their success. If the content is too shallow, without valuable information, it will neither be honored by your visitors nor ultimately by Google. Promotional items , which are many times more durable than online advertising, can also be used sensibly to increase brand awareness and create a positive connection to your brand.
So don’t save money in the wrong place, but use your advertising budget differently. More targeted and where you will find your potential customers. Advertising in times of crisis is an investment that brings long-term benefits.
Long-term investment in brand awareness
Reducing advertising spend may save costs in the short term and for some it may look like a solution. In the longer term, however, this can lead to a considerable loss of brand awareness. A company that disappears from the consumer’s field of vision during a crisis must be aware that the brand awareness it has built up with a lot of money will have disappeared within a very short time. It will be very difficult to regain a foothold after the crisis because, as we all know, the competition never sleeps. It will also cost a lot of money to rebuild this awareness and customer confidence. The continuous presence on the market ensures that the brand remains in the minds of consumers and can pick up again more easily after the crisis.
A small example from practice
Numerous studies and examples from the past show that companies that have maintained or even increased their advertising expenditure in times of crisis have emerged stronger from the crisis. A well-known example is the automotive industry during the 2008/2009 recession. Brands such as Hyundai and Kia continued to invest in advertising and were able to significantly increase their market share, while other manufacturers cut back and lost market share.
Advertise wisely and consistently
In difficult economic times, it is more important than ever not to save on advertising, but to use it strategically, more appropriately than before and more efficiently. A well thought-out advertising strategy, especially in difficult economic times, can help to secure market share, build trust and achieve long-term success.
We support you in optimizing your advertising measures and positioning your brand strongly, even in difficult times.
We will be happy to provide you with further information and individual advice. Together we will find the optimal solution for your advertising strategy. Optimize your marketing strategies during a recession and rely on strong brand awareness during economic crises.
About the author:
My name is Isabel Unger, I am an independent digital strategist with a clear focus: visibility for the self-employed & small businesses. My heart beats for SEO, content, structure – and for explaining complex things in a way that makes them understandable and feasible.
On ixtreme.online I share my knowledge, my experience and a lot of plain language – without any technical gobbledygook.
People buy trust – not marketing speak.
Content marketing allows you to reach the heart and mind of your target group.
