There are many assumptions made about advertising and marketing budgets in a recession. Popular wisdom dictates that it is opportune to invest in the brand during this time, as you will reap the benefits when the economy recovers. However, reality dictates otherwise when you need to decide between the two choices of cutting people or adspend, perhaps the decision should be approached more cautiously.

So, what does one do differently in recession? The first thing we would all like to do - is turn back the clock. As cashflow becomes tighter, we begin to feel the weight of certain expenses that we incurred during more buoyant times. We somehow tend to overlook those prudent choices that were perhaps somewhat more of an investment at the outset, but have provided returns way in excess of anything that was cheap and nasty. If there was one phrase that could be applied to guide your advertising and marketing efforts during a recession, it would be this: think.

The best judge of the future is the past. Although case studies of actual spend in varying economic climes are difficult to benchmark accurately, there is a large volume of evidence that indicates that you get exponential gains once money becomes more abundant if you continue communicating through the lean times.

Although this article is not to argue for an increased adspend, there are numerous studies that conclude it is far better to increase adspend in a recession for both market share and long term profitability. For instance, when the Great American Depression came in the 1930s, Kelloggs kept their advertising going while Post cut back. When the Depression ended so had the race between them as Kelloggs emerged the dominant player, a position we are reminded of even today.

However, its not about spending more or spending less its about spending smart. This is the time to introduce lower cost line to hold on to customers so as to keep consistent customers consistent and the excitement of special offers is that much more exciting when times are tough. And no one is immune to the promised benefits of easy payment terms.

People tend to spend money on what they think is essential. When money becomes tight, we tend to cut down on things that do not offer us a specific benefit. We cant afford to buy things we cannot clearly see. But every product will claim to be essential. You need to be specific. It is essential that the market understands how your new reduced spec offerings can help them get through these lean times.

If you cant spend in mainstream media, the next best thing is to hang in there with consistent dialogue to your market. Its about staying close and spending time with them. The argument for this is a persuasive one if 20 people in a room suddenly stop talking, but one person continues to do so, the effect is obvious. This suggests that the research we see on increased market share from those who continue communicating during a recession, is due more to the absence of the competition, than the power of the message.

Consumers dont go away during a recession - they just tend to be more conservative (in most categories). This is the time to concentrate on core values demonstrating a strong consistency of message. This is also the time to leverage those longstanding relationships. The list of those who have dealt with you before spare you the cold calling label it gives you permission to say something to a market that knows you. Having to introduce who you are from scratch can be an expensive process, especially when purchase frequency and volume is down.

Sponsorship also takes on new importance. The advantage is that the space you take up, although it may come with a price, does not relate to the cost per column centimeter in newspapers or minutes on the radio during drive time. If there was a maxim for marketing in a recession it would be this: find any opportunity where the brand message can be spread events, cause marketing ... anywhere where there is no direct time/space cost for placement. If you are the key sponsor at a sporting event, this is not the time to place a modest banner at the start to indicate that you were there.

Innovation also plays a pivotal role during a recession people are responsive to new solutions and will appreciate the introduction of variety. The additional advantage of being "first in" with an innovation during quieter-than-usual market activity, gives you that advantage again of standing out when others stand still.

During periods of economic down cycles, consumers don't stop buying they just expend more energy on looking for value. In the same way that your offerings adapt to changing economic conditions, look for likeminded bedfellows suppliers who can give you the added value that you can give your clients.

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