Online Advertising On A Weak Economy
It’s inevitable, recession is starting in the U.S. already and may affect the world’s economy. Many businesses are already laying off many workers and many business already folded up including many online businesses. But what about advertising? According to the article I read, its just the opposite. Many recessions already hit the United States and companies who survived knew what to do to save their company. It’s called “Branding”. In a weak economy, that’s what companies should be doing. They should advertise to make their name look important and stick to the minds of the people. It will also make an impression that a company is doing all right despite of a bad economy and many will be loyal to the products they are selling.
Recession comes and goes and the saying is true that “History Repeats Itself” and “There Is Nothing New Under the Sun”. In the article by Svetlana Gladkova at Profy he points out things about online advertising, and how it will be affected as our economy worsens. She provides a very thought-provoking analysis on the subject, comparing it to what advertising was like in the great depression. This is some of her analysis:
There was quite a number of examples of successful brands during the Great Depression, including Chevrolet cars, Camel cigarettes and Procter & Gamble (that gave birth to the phenomenon of soap opera during those hard times). And all of them relied heavily on advertising because they realized that they needed advertising to create and maintain brand loyalty. They simply pretended there was nothing particularly wrong with the economy and consumers still had money to spend – and this proved to be the right approach for them.
We should also keep in mind that advertising is one of the measures to demonstrate to consumers that the company is healthy. After all, not all the consumers have a daily habit of tracking stock market behavior to know what’s going on – yet when they see a company spending money on advertising, they think everything is fine with the company. Say, if every time you see a T-Mobile or Blackberry ad on every single blog you visit and one day you see those ads replaced with AT&T and iPhone respectively, your first reaction is supposed to be thinking that the first two are already facing some serious problems while the competitors are in a better position.
And this explains why those companies that survived the Great Depression and even grew during the recession period were not those that were wise about their budgets and cut on advertising as much as they could – instead those were the companies that continued to push their brands to consumers, thus making those consumers choose their brands over competitors (under-advertised) when making a decision what to spend their limited money on.
And so it is in online advertising. The internet not only has a nationwide reach it also has a global reach and companies will benefit from it. If you have a business, the cheapest way of advertising is through the internet. You can start now by placing ads on Google Adwords. Don’t be left behind and skimp on a few bucks and be under advertised because advertising will have many good results for the future of a business.