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
When in a service industry of any kind, the state of the economy can take a large toll on a company’s profitability. Lately, the economic downturn has forced many companies to cut budgets, freeze spending, initiate layoffs, or worse – close their doors. When speaking to many of our clients, partners and friends, it seems that many people are either suffering or prospering – there truly is a balance of good and bad right now.
However, it is difficult to ignore all of the negative media coverage regarding the current economic state. The media’s redundant message of “doom and gloom” eventually convinces us all that we must surrender and give in to the recession that is upon us.
Brand Iron disagrees.
As a company, we’re opting to not participate in the recession this year. Yes, you heard it here first. Brand Iron is not giving in to the “doom and gloom.” We challenge you to do the same.
Many companies are focusing on the positives and the new opportunities that this changing business landscape has opened up. For example, in an industry (luxury travel) where economic woes can take a gigantic toll on profitability Carnival Cruise Lines is saying “we will not go quietly into the night” and await the inevitable. Carnival continues to make strides towards out-of-the-box, interactive advertising.
I’m sure we have all seen the commercial with the large beach ball floating around downtown Dallas. That commercial was an extremely effective way for Carnival to catch the attention of the business-class professional on their lunch break. Throw a gigantic beach ball onto a bustling street full of unhappy professionals and see what happens – attention, positive feedback and enjoyment, that’s what.
Today, I came across an article about Carnival’s latest attempt at interactive advertising. They’ve managed to take advantage of the empty street-level office spaces in the Houston, Baltimore, Los Angeles, New York and D.C. areas by installing “virtual aquariums” for all to interact with.
Picture this, you’re walking down a cold city sidewalk on your lunch break when you look to your right – no longer is there an empty office space with a broker’s contact information in the window. No, you now see a 12-foot digital aquarium. Not only is this virtual aquarium engaging, it’s interactive. In five easy steps, you can use your cell phone to design a personalized fish to appear instantly in that very same window. This is an example of a company seeing an opportunity that may not have presented itself before the downturn in the economy. This is brand evolution and adaptation at its best. If there are three pearls of wisdom that we should all recognize after this economic downturn, they would be: never stay static, always engage new ways of marketing, and consistently separate yourselves from the competition.
Written by Nicole Salerno, Junior Brand Wrangler
