It is not uncommon for small to mid-sized businesses to utilize their marketing budget like a day trader may ride a stock mark trend wave. When things are moving in the right direction, you are urged to increase your investment. Conversely, when things don’t look so rosy, there is often a compulsion to slow or even stop investing.
The truth is that when it comes to marketing and the stock market those who stay invested in the long term fare far better than people who are trying to time the market. So, what should you do with your marketing budget during the highs, lows, and everything in between?
When is the Best Time to Double Down on Marketing? During a Downturn.
The stock market and marketing analogy can be taken one step further. A market dip is often the ideal time to buy, aligning with the maxim: buy low and sell high. From a marketing and PR perspective, companies can often see greater returns when they increase their marketing spend while others are pulling back.
That is where millionaires are made.
When there’s an economic bump in the road, every company’s first instinct is to cut back on the marketing budget. Yet slashing the marketing budget during a slowdown has been proven to reduce leads, decrease sales, and stunt a company’s recovery. Perhaps no greater example is the cautionary tale of the Ford Motor Company.
In the 1930s, Ford was king; no competitor (it seemed) could ever catch them. They were simply unmatched. However, at the first signs of what would become The Great Depression, Ford halted all of its marketing efforts which would turn out to be a massive blunder.
GM saw their opportunity and decided to increase their advertising and PR spending. Within the decade, GM would overtake Ford to become the largest auto manufacturer in the world—a title it held for more than half a century.
Marketing Budget: Different Industries, Same Results
It was a similar story in the cereal sector. Earlier in the 1920s, Post Consumer Brands reigned supreme. However, when faced with the Great Depression, the company chose to significantly cut its ad spend. What did Kellogg’s do? Based on stats provided by Forbes, Kellogg’s doubled their marketing spend and introduced Rice Krispies, growing profits by 30%.
Fast forward to the economic recession of 1991. Pizza Hut and Taco Bell maintained their marketing efforts while McDonald’s pulled back. By the time the economy recovered, Pizza Hut’s business was booming, and sales increased by 61%. At the same time, Taco Bell’s revenue improved by 40%. Meanwhile, McDonald’s’ blunder led to a sales decline of 28% – stats courtesy of Nova.
As the old saying goes, “When times are good you should be marketing, and when times are bad you must be marketing.”
Digital Marketing Budget
This is not a case of ‘that was then, and this is now’. During the 2008 recession, Samsung decided against cutting the marketing budget and instead decided it was an ideal time to rebrand itself as an innovation company. This strategy paid off, and Samsung’s global brand value increased from 21st to 6th place—and it is currently holding steady at 5th place.
While it was advertising that got the attention of prospects back in the 20th century, today people are looking for more. More ways for them to help themselves. This is where B2B PR can play a significant role in your marketing and overall business strategy.
Trade publications have long been the most ideal platforms for B2B operations. Recent data indicates that the readership of industry publications has potentially increased, as decision-makers seek insights into how their industries are adapting.
However, the price tag for advertising in these publications can be a large pill to swallow even for larger enterprise operations. A full-page ad can run in the tens of thousands of dollars.
PR Is the Marketing Solution for The Future
If you are wondering what to do with marketing budget during highs and lows PR is always a good solution.
However, advertising is not the only – or even the most ideal – avenue for getting seen in the trades. That spot falls on the content between the ads. The content is why people subscribe and read those publications. Therefore, getting included in the stories is one of the most ideal ways to move the needle and drive revenue.
Traditional PR relies on pitching journalists story ideas and press releases. However, there is now another option for B2B operations that want to generate a lot of positive and influential press.
Think about it like this, what if you had a journalist who wrote for all of the trades your ideal customers were reading? What if you could get them to write a story that included mentions of you, and they would agree to publish those articles numerous times a month?
How would a consistent presence in the press improve your business’s outlook? How would an industry-wide perception of you as a leader impact the bottom line?
This is exactly what we do for our clients. We are seen as contributing writers for hundreds of B2B publications. We know how to write articles that editors will publish, and your audience will connect with. This is the PR of the future. And you can have it right now before your competitors take advantage of it.
Contact our B2B PR agency now to learn more.
