Brand Iron - Forging Brands, Driving Revenue

Every day we are reminded that we are in a recession…the countless news reports, articles and blogs remind us constantly about how to cut costs to assure survival during these tough economic times. As a struggling citizen of our latest societal problem, I couldn’t help but think “how did we get here?” In my lifetime as a working professional, I could never recall any economic times as tough as they are today. In fear that my generation may have to experience similar hardships as the Great Depression, I started to research more about how people (more specifically businesses) were able to prosper during that time. And what I started to discover was amidst all the negativity, we are forgetting what made some companies even more successful as a result of the Great Depression.

No doubt during “normal” economic conditions, companies wouldn’t dream about cutting their marketing budgets, so why should we stop now? In fact, since most companies are cutting their commercialization, wouldn’t now be the time to get your brand noticed while most of your competitors have gone silent? Additionally, wouldn’t you want your brand to be perceived as stronger than your competitors? Ironically the companies that advertised during the Great Depression became even more successful, once spending finally did increase. Their “staying power” actually gave the public a reason to be loyal to that brand and they came out on top while their competitors tried to gain lost ground. The common denominator among companies who persevered during the Great Depression: they did not decrease their ad spending. Therefore, those businesses who actually tried to save money and stop advertising, actually wasted the brand building dollars they had previously spent.

You could say I’m biased because I’m in marketing or perhaps that I’m overly optimistic, but with companies such as GE, Disney, HP and Microsoft all emerging out of recessions, perhaps we should all be reminded of the advertising and marketing history lessons of the past. What businesses fail to realize is, that even in recessions, people still spend money, they just look for better deals (and appreciate it more) when they do. Therefore saving money by cutting budgets in a down economy doesn’t automatically lead to successfully surviving a recession…especially if you’re not looking to stay top-of-mind of the consumer! 

Written by Rebecca Watry