During the last recession in 2008, ad spending dropped by 13%. However, over nearly the past 100 years, it's been empirically proven that organizations that maintained or increased their ad spending during a recession came out of it stronger that their competitors who decreased their ad spending.
Why? When organizations maintain or increase their ad spend in a recession...
- There is less competition as their rivals decrease their spending. Less competition equals a greater share of voice in the present, which leads to increasing an organization's share of mind in the future, after the recession.
- During challenging economic times, your steady ad spend can result in the generation of an aura of organizational stability with your audience (Note... The advertising must be efficient... Check out the post on the "three-legged stool" for more detail on that).
A good way to look at this is that if an organization increases its share of voice by consistent or increased advertising in a recession (as its competitors reduce their advertising), this can lead to increased share of mind in the potential donor, which then can lead to an increased share of market (by converting a potential donor into a donor) and increased share of market equals an increase in revenue and profit for an organization.
One successful recession strategy used by marketers in the consumer marketplace is changing the ad message and using short-term price incentives to match the economic climate with consumers who are seeking a good deal.
In fundraising terms for nonprofits, consider increasing engagement on social media (for present donors and potential new donors) and re-focusing your paid digital ad appeal (to potential new donors or present donors who are not monthly partners) to describe exactly what a small donation per month will tangibly provide the people you serve ("Your $10 per month donation will put bibles into the hands of twenty-five new believers this year... Twenty-five lives changed for the cost three coffees per month").
Sam Walton probably put is best when he was asked, "What do you think about a recession?" He answered, "I've thought about it and decided not to participate."
We at Lasting City Marketing can show you how to put this plan into motion. Click through on the homepage to connect with us for a consult.
