In a bad economy, companies “batten down the hatches” to prepare for difficult times. Studies show 75% of U.S. companies respond by cutting back and prepare for a difficult period – deservedly so.

One common mistake companies make in recessionary times is cutting back on their marketing and advertising budget – this is usually the first expense that gets eliminated.

During a recession, consumers don’t stop purchasing, but they do become more selective. They focus on looking for “value” in their purchases. They are going to purchase products and services from someone, likely businesses they know and trust.

Better make sure they know your business!

In today’s digital age, businesses small to large, should continue to invest in their online marketing and advertising. The Internet is the most efficient, cost-effective marketing channel, and delivers the most ROI in acquiring customers and revenue. The web and mobile will only continue to grow in effectiveness for a business. Businesses should consider reallocating budgets that are used in other less effective media such as print, yellow pages, radio, and TV into online marketing programs such a website, search engine optimization (SEO), Internet video commercials, pay-per-click advertising, email marketing, and other online media.

McGraw-Hill Research did a study of U.S. recessions, analyzing 600 companies from 1980-1985. The results revealed that companies that maintained or increased their advertising investment during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for three years following the recession, than companies that eliminated or decreased advertising. Sales revenue of companies that advertised aggressively during the recession had risen 256% by 1985, over those that didn’t maintain their marketing efforts. See graph below.

Comparison of Sales & Ad Expenditures Pre and Post Recession

Moreover, six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that advertising aggressively during recessions increases sales and profits. This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949.

To be successful, a business should have the following working and functioning online marketing infrastructure to empower their business in today’s economic times:

1. Well designed and effective Website
2. Search Engine Optimization (SEO)
3. Blog
4. Social Media Marketing
5. Online video commercials, business profiles
6. Content Generation
7. Email Marketing and Customer Databases

Ideally you want a web design firm that provides all of the above services versus a hodge podge of different companies where integration, effectiveness, cost, and management become a problem. A strong web design firm can function as your online campaign manager, integrating all of the above facets.

Minds Over Media provides full-service online marketing services including web design Denver, SEO Denver, video production Denver, social media marketing Denver, blog design Denver, graphic design Denver, and other digital media services.