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Marketing in a Down Economy

December 14, 2011

How does the housing market affect the advertising market? It seems like a silly association, but according to Mike Sheldon, CEO of Deutch/LA and marketing manager for ad campaigns for Volkswagon of America, Sony Playstation, and Dr. Pepper, considers the housing market to be a precursor of the advertising market.


Sheldon “believes that “it won’t be a solid recovery” until the housing market bounces back. “The purchase of a home is the ultimate act of self-confidence,” he notes. As such, Sheldon envisions a “slow and wobbly” rebound for the ad industry.” (


Everything in this volatile market is connected, and, as points out, if a large part of the demographic remains unemployed without the funds to purchase products, the companies that make those products will not have the budget for advertising.


Why You Should Be Advertising NOW

While most of the experts agree that big box advertising budgets will be dramatically smaller in 2012, many marketing professionals and firms, including Quaintise, believe this is great news for you. Let’s look at the stats from


McGraw-Hill Research conducted a study of U.S. recessions from 1980-1985. Out of the 600 business-to-business companies analyzed, the ones who continued to advertise during the 1981-1982 recession hit a 256-percent growth by 1985 over their competitors that eliminated or decreased spending.


And that isn’t the only research into advertising during a down economy to show such amazing numbers and growth. When the economy is down, one of the first things to get cut from the budget is advertising. It makes no difference whether your company is a Fortune 500 prospect or a mom-and-pop shop on the corner, the advertising budget is always the first to go.


However, as companies cut their advertising budget, they leave the door wide open for their competition to step up. If you are in the medical industry, say an OB GYN, and your competition is cutting their advertising budget for something that is essential to a woman’s health care needs, that leave the door wide open for you to take over. Women will still need health care services, and will still respond positively to advertising, so when your competition shuts down marketing you can be there to pick up the slack and pick up the fans. No matter what the economy is like, there are still essential services that everyone needs.


If you’ve noticed that your competition is cutting back on their marketing, it’s time for you to step up. Talk to us today about how we can make this happen for you.