By Norton E. Warner

Maintaining or increasing the advertising budget in a recessionary economy is essential to the long-term health of any enterprise. During an economic downturn or recession, most advertisers cut their budgets drastically. The two reasons heard most often are:

"People do not have the money, so our advertising would be wasted."

We can afford to cut our advertising because our competitors are cutting theirs." I have discovered a principle of personal or entrepreneurial success that seems to prove itself again and again. If you would succeed, observe what everyone else is doing and do the opposite. This seems to be true for advertising budgets in recessionary periods.

Nariman K Dhalla, in an article titled "Advertising as an Antirecession Tool" published in the Harvard Business Review, said, "Rather than wait for business to return to normal, top executives should cash in on the opportunity that the rival companies are creating for them. The company courageous enough to stay in and fight when everyone else is playing safe can bring about a dramatic change in market position."

Malcolm Moses, of Malcolm Moses & Associates of Boston, wrote in Boardroom Reports in the article "Recession Wisdom for Marketers,""Get more leverage from the advertising budget. Don't drastically reduce it. Companies that keep an advertising presence emerge from recession faster and stronger."

Norton is the author and creator of Marketing Firepower. Five decades helping businesses develop strategies, create campaigns, identify and target the most profitable customer and proper budgeting advice have all contributed to the Marketing Firepower information. Norton created Marketing Firepower to make his experience and success strategies available to businesses around the world.

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Tags: recession, marketing, advertising, budget

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