Businesses Must Advertise Or Die

Posted 09/08/2009 - 08:53 by Editor

Article from "YP Talk"

More Evidence That Businesses Need to Advertise or Die

08/19/2009 - This came out a few months ago and has been in my pile, but now seems like a good point to bring it to you:

According to a recent Ad-ology Research study titled, "Advertising's Impact in a Soft Economy," more than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling – it’s a very logical assumption. Conversely, a vast majority of the public perceives that those companies that continue to advertise are being competitive and are committed to doing business ongoing.

C. Lee Smith, president and CEO of Ad-ology Research:

"It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand... advertising... assures consumers of a business' reliability... "

Other key findings in the study included:

  • 40% of consumers use coupons more now than a year ago
  • Most consumers are as willing or more willing to pay more for ‘healthy' or ‘organic' products than they were a year ago (if they can still afford it)
  • A “deeply discounted price” was the number-one factor that would make consumers more likely to purchase a big-ticket item (+$1,000)
  • TV, newspaper, direct mail, and Internet top local media from which consumers saw/heard an ad within the last 30 days that led them to take action. Yellow Pages were not covered specifically in the study, so its not clear where they would rank vs. this other media
  • Store Web sites ranked second only to search engines as the way consumers research products

For more information about the report, with charts, go here.

Sure it takes some guts to spend money on advertising when your business is slow at best. But the consequences of not advertising may be worse….