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OAKVILLE BEAVER Thursday, October 15, 2009 · 20 Don't touch that ad budget Barry Ellison, national director, Marketing, BDC When the economy takes a nosedive, it seems like common sense for companies to cut back on advertising and marketing. But there's a growing body of evidence to suggest that entrepreneurs who maintain or increase advertising during tough times will come out ahead when the economy picks up. "A recession could be one of the best times to advertise because your competition is probably advertising less" says Barry Ellison, national director of marketing at the Business Development Bank of Canada (BDC). "Your name, your logo and your message will get noticed more and customers will remember that, even when the recession is over." In short, says Ellison, when times are good, companies should advertise. When times are bad, they must advertise. Past recessions have shown that to be the case. A McGraw-Hill research study of over 600 businesses found that companies that maintained or increased their ad expenditures during the 1981-82 recession saw average sales over the next three years grow two-and-a-half times faster than companies that reduced advertising. The numbers don't surprise Yves Michel, director of media planning at Montrealbased marketing agency Zoum Armada. "Consumers tend to buy products and services they already know and trust, particularly if they have less money to spend" Michel says. "So if you decide to reduce your advertising, prepare to suffer with lower sales and lower brand recognition for the next two to five years." Jay Handelman, an associate professor of marketing at Queen's University in Kingston, agrees. He points out that economic cycles come and go so companies should plan for the recovery. That means viewing advertising as an investment and not an expense. Find ways to communicate the value your business delivers to customers ­ such as after-sales service -- rather than focusing on price, Handelman adds. "Lowering prices tells customers that what you have to offer is not worth that much." Old media versus new media advertising There is a dizzying array of advertising and marketing choices these days, from traditional media like television, radio, billboards and newspapers to less expensive new media and social media such as Facebook, Twitter and blogs. Deciding which approach is best starts with developing a marketing strategy that identifies your target audience and how best to reach them for the lowest cost possible. "You need a game plan on paper that shows what your budget is and who the primary users are of your products or services" says BDC's Ellison. "Next, scope out the different media channels you want to use. How much will they cost and what's their audience reach?" "Then forecast your expected return on investment from these channels." If you're keen on boosting your presence through social networking, online marketing expert Dan Martell says the approach will depend on how comfortable you are with being social. "If you're an introverted engineer you should spend most of your marketing time on Google Ad Words. There's no other place where you can spend $500 a month and get in front of two million people with the click of a button" says Martell, CEO of Flowtown, a consulting company based in San Francisco, California and Moncton, New Brunswick. However, if you're a highly social and motivated individual, Martell says the easiest thing to do is to create a fan page on Facebook. That's what Martell's brother Pierre did when launching his company, Martell Home Builders. The Moncton company wanted to take advantage of the viral nature of the Internet to spread the message it could build a home, on budget, within just 99 days. Today, clients can visit a job site virtually via the web, watch the progress every hour and communicate instantly with contractors by text messaging. Martell also uses YouTube, Facebook, Twitter and a blog to get his company's message out. And it's working. Influential bloggers are raving about Martell Home Builders and 80% of its business now comes from referrals. The company is growing every year. "What's great about Facebook fan pages is you can get that wordof-mouth marketing happening" Dan Martell says. If you're interested in a blog but not confident in your writing skills, Martell suggests starting with Twitter. He describes it as an effective way to connect with existing and prospective customers, but with fewer words. Once you're comfortable with tweeting, then you can try your hand at a blog or YouTube. Bottom line: if you're a small business with a shoestring budget for marketing, there are limitless opportunities available. Whether employing traditional or new media ­ or a blend of both ­ be sure to choose a solution that reaches your target audience with maximum impact for minimum dollars. Source: www.bdc.ca The Drape Lady: Customized design and service to suit your needs The Drape Lady H aving dressed thousands of windows over the past 20 years, Elisabeth knows the secrets of the trade and draws from a wealth of experience. Keeping looks and practicality in mind, Elisabeth will develop the perfect design for your window. She offers a wide variety of fabrics and stylish hardware to enhance the atmosphere of your living space. Be it traditional, formal, casually elegant, or updated traditional, Elisabeth will create the style that best enhances a well balanced flow throughout your home. Once again Elisabeth would like to thank all of her loyal customers for working with her and passing "the word" on to friends and neighbours. She can be reached at "The Drape Lady Interior" at 905-847-3287 www.drapelady.ca