» Don’t Go Dark: Marketing in a Downturn

These are not the best of times — for anyone. In the marketing and advertising business, we find ourselves working with clients who are in the worst possible position: caught between dueling pressures to cut costs even as they maintain (or build) revenue.

It’s a delicate balancing act. We’ve seen some clients who have decided to secure short-term bottom-line savings by cutting their marketing expenditures. Mission accomplished.

But then what happens tomorrow? My strategy lead spoke with a client last month about how her firm was planning to weather the current storm. Her business is a big one — by virtue of its size and international reach, it’s inescapably tied to the growth or contraction of the global economy. She was thoughtful but very clear.

“Look,” she told him. “We understand the need to cut costs. So there’s going to be some belt-tightening in our marketing, too. But we know from experience that if we stop marketing, our customers will turn their attention to our competitors.

“As things begin to recover,” she continued, “getting that attention back will cost us a fortune. Because we’ll have to go from zero to a hundred in a hurry.”

It was an eye-opening conversation. And it was about as succinct an argument as we’ve heard for the importance of continuing to market — even when the economy is in a slump.

All doom-and-gloom aside, consumers haven’t stopped spending. They’re saving more, which is ultimately a good thing. But they still need shoes and groceries and Internet access; they still pay tuition; they still need regular checkups and vitamins and teeth cleanings, and they still buy gifts for birthdays and anniversaries. There is a Santa Claus, Virginia — and he is us.

What’s different is that consumers are being more thoughtful about why and how they spend. What I’m telling our clients is that their customers first have to know that they’re still there. Second, today it is no less important — in fact, it’s probably even more important — that consumers (businesses or individuals) know what you’re selling and why it’s a good time to buy.

It’s fundamentally the same calculus as marketing in better times — just a different mindset. I can summarize the advice we’re giving to our clients in four main points.

Stay at the front-of-mind. With some customers, you know the purchase will be made. Toddlers need diapers; drivers need fuel; E&P companies need drilling mud. When it’s time for these purchases, you want to be the first source your customer thinks of. Be present, and remain a presence.

Sustain current sales. It’s easy to be confident if the downturn hasn’t impacted you yet. Emphasis on yet—it’s likely to take a while to get through this, and realistically, everyone’s going to feel it sooner or later. Your continuing marketing efforts will help to keep you a part of your customers’ calculations. An important consideration: the message you send may need to be tuned to the times. (Everyone’s concentrating on what’s really important — are you speaking to that new sense of priority?)

Take advantage of opportunities. My investment advisor likes to talk about the theoretically infinite upside of investing when the market’s low. At least part of his point is that equities are cheap right now — and so are a lot of other things. Such as ad space. Broadcast, print, online, outdoor and non-traditional, everybody is dealing. And that’s a good thing — it can help make it very affordable to make a big splash. And speaking of non-traditional, this might be the time to provoke your customers with some new channels and new ideas.

Take a chance on growth. When your competitors are retrenching, you should consider reaching forward — even launching something new. It isn’t just that there are deals to be had (as noted above). It’s that it’s incredibly quiet out there, and there’s a lot of pent-up demand. If you start a new campaign, launch a new product, or even roll out a new brand, you may find a market that’s surprisingly receptive to bright ideas.

Kristy Sexton is the founder and President of Adcetera, an independent Houston, Texas–based strategic marketing and advertising firm founded in 1983.