How a recession affects advertising

After hearing rumours about another recession on its way, I thought about how it would affect advertising considering that one day when I do become that legendary marketer, I will most likely be in the advertising industry and will need to know how major macro factors such as the economic recession could affect my passion.

When recession is upon us then consumers tend to clench their wallets, Sales decline and advertising budgets decrease. But I ask the question, why should the advertising budget decrease? According to Anon (2012) all they have to do is look for new ways to re-position products or services they provide to attract a new market segment. This new concept could open up a whole new segment that previously had not existed which would also give you an edge over your competition. Changing the way the budget has been allocated to the advertising channels could also make a huge difference.

Traditional advertising forms such as television and radio are effective but expensive. According to Evans (2010) newspaper sales increased during the last economic recession (year 2007-2009) due to the many specials and bargains being advertised in it therefore your products or services could get great exposure. The use of social media as a marketing tool was on the rise back then. However it is the year 2014 and social media is a brilliant platform for advertising practically anything. In a world that’s fast paced, consumers are able to connect direct with their suppliers and have almost instant responses to questions, orders or query’s. So why not invest in a bigger budget for advertising on social media, especially when it is effective and cost effective.

The point that I am trying to get across is, be smart when re-positioning your product and cutting your budgets because the opportunity to break through the clutter and advertise your product may not be as costly as you think and a new segments could lead to fresh ideas and new products. By keeping up a strong advertising campaign during a recession, it is possible for a company to grow even stronger when the economy turns around. So that’s just something to think about #Dove-The MarketingMafia