Why Small Business Should Advertise During Bad Times
Filed under: Low Cost Marketing, Online Advertising, Small Business Advertising
Although the economy is starting to show signs of life most businesses are still in a very conservative mode when it comes to any sort of spending. As anybody will tell you advertising and marketing in general is usually one of the first things to be cut when the paring down of spending begins. Today I had an interesting story come from one of the local business owners here in the town I live in. He has became a good friend and a soon to be customer and frequently gives a lot of solid insight into the mind of the family owned business.
Last night as I made my way home I had driven by his restaurant and was smiling as I saw the parking lot was, and no exaggeration at all, overflowing. I was happy since I know the past 3 months or so have been pretty tough as far as business goes for the Husband and Wife ran restaurant.
Today, out of the blue, he came into the office just to sit and chat and check out the new location. I asked him about the parking lot being filled up and he said that even though he knew better he had shutdown all advertising 4 months back. He said in all his years of running a business he, as many have learned, start spending more on advertising when things slow down but this time he went against his better wisdom and stopped spending and immediately saw the impact.
Well, this past week he had turned it all back on, and now things are back almost to where they were. He advertises in very specific spots (not the newspaper funny enough) and tonight when we went to eat at his fine establishment the parking lot was full again. Great news for him and a lesson to be learned for small businesses that start cutting their awareness campaigns as soon as they need it most.
And as luck would have it we agreed on his package with us as well, good timing I guess.
For more information on why businesses should look at creative ways of advertising check out: Open Letter To Small Business Owners.
Glad to see him doing well and do advertising again. Just curious is it a lower price resturant? These higher end places are getting killed
With all due respect Bruce, I am convicned were improving one bit. The nation and its debt, the dollar, cost cutting by corporate America, drive around your housing area and tell me things are improving.
Where we live, 15 percent unemployment, house values cut in half and even the wealthly getting killed.
The only thing I see encouraging are people rebounding in the stock market wealth from its lows but with so many layoffs, estimates cut heavily, I surly hope they make there numbers.
I think things will get worse and wish I had a crystal ball lol but everyone is saying were coming out of a recession and where I’m at, living, the key indicators, I am not to sure.
However your doing great Bruce and the ecomomic picture hasn’t impacted you from what I had read.
Regards
Hmm
Miss a big word. Sorry.
I’m not convinced one bit things are improving.
Well said. There is another major reason for advertising during low times. The rates are cheaper to place advertisements. Also you get better talents at nominal rates to make your advertisements.
@Hmmm – Agreed that there are still problems, I am not saying things are good or great and I have many friends still in major need. As I typed that part I knew someone would take issue and I do not disagree with your statement at all. That said though, I would say that their are flickers of hope, I just had a talk with someone the other day that said based on the opening up of the business credit markets they have started to see positive signs in their business just based on what they do. A flicker is better than nothing.
@DnClips – You are very very right:)
I’m glad to hear its doing well Bruce.
I’m a small business owner for 9 years, past 2 years had to grab a dead end job and hope 2010 will be my refocuse year on my online dreams and passions. In fact I sell a product and would probably he seeking out targeted geo market for advertising and search engine advertising when timing is right. I may attempt geo owners in a revenue share agreement of some sort, more upside to them and minimize my risks with it being a cash deal. If the geo site owner knows tons of businesses in there market, gives them an extra incentive to help that advertiser who is giving up a commission vs cash. Both parties would be happy hopefully.
I’m just waiting on the sidelines to start this process and basically be a new company and know the industry well. Tough finding good webmasters and everyone thinks there a rock star of some sort lol.
Good post Bruce and keep them coming! Your doing well in your market, you know the market and your reaching out.
Elliot did a wonderful post and not many comments but with thanksgiving coming would you be doing a sponsorship in your community for turkeys or something for a good cause and gain some branding or better yet get your advertisers behind you and get them help out. Think this could be a win, win for you guys and your customers, serving to homeless. Just my 2 cents
Regards
Hmm
Advertising works period…I said the words taco bell in real estate class the other day and three people talked about the new ad for the black taco. .
An old roofing company in my city just bought 3 new trucks and had them wrapped with bright colored ads…they are kicking arse.