How Long Do You Plan to Be in Business? Let’s start with my observations:

- The market has slowed down.

- People are still buying.

- Companies are cutting their advertising to match their perception of the market.

When you stop advertising you’re promoting the slowdown. You’ve stoppedstimulating the demand for yourproduct or service.If your competition is following the pack and has cut their advertising, you have an opportunity to capture a larger share of the market. If you continue or even increase your advertising your message will stand out because your competition has pulled back.

Your message will stand out even more if overall advertising has diminished. There will be fewer ads to clutter the minds of the audience. Because your message is heard more often by more people you’ll develop a greater top-of-mind awareness for your product or service.

A greater top-of-mind awareness equates to more sales.

As the market begins to rebound and business improves for everyone in your category, your business will leapto the head of the pack with exponential growth.Research has proven this same scenario time and time again.

In a study of U.S. recessions, McGraw-Hill Research analyzed 600 companies from 1980-1985. The results showed that business-to-business firms that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. By 1985, sales of companies that were aggressive recession advertisers had risen 256% over those that didn't keep up their advertising.

In addition, a series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that advertising aggressively during recessions not only increases sales but increases profits. This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949.

“Most businesses back off or stop their advertising when sales get slow. Then, when sales pick up, they begin to advertise again. While that may be financially convenient, it can be devastating to a plan for strong, steady growth.”

(Source: The 33 Ruthless Rules of Local Advertising by Michael Corbett.)