Promoting Your Ad Agency in a Recession

Agencies know that advertising in an economic downturn is not a drain on their clients profits but can actually significantly contribute to and increase in profits and market share.

McGraw-Hill Research analyzed 600 companies covering 16 different SIC industries from 1980 through 1985 in a study of U.S. recessions. The results showed that business-to-business firms that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising.

By 1985, sales of companies that were aggressive recession advertisers had risen 256% over those that didn't keep up their advertising.

A series of six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that advertising aggressively during recessions not only increases sales but increases profits. This fact has held true for all post-World War II recessions studied by American Business Press starting in 1949.

One major advertiser summed it up best. "When times are good, you should advertise. When times are bad, you must advertise."

This is the kind of data that advertising agencies use to demonstrate to their clients the importance of advertising in a down market. But this "do as I say, not as I do" mentality raises a suspicion. If agencies aren't promoting themselves, why should anyone else?

A recessionary period is a great time to promote your agency an increase your market share and profits. Do the opposite of what your competition is doing. Develop a simple agency promotional plan that you can consistently implement using a combination of traditional and Web 2.0 tools.

Treat your agency as if it was your most important client.



Michael Gass is an agency new business consultant, primarily to small and mid-size advertising agencies. Michael works with marketing communications firms to create a more clearly defined focus and differentiating business strategy that will give them a competitive advantage for new business, a higher-profile reputation, and an improved ability to attract and win the clients they really want.

For additional information please visit Michael's website at http://www.michaelgass.com - his blog site at http://www.fuelingnewbusiness.com or call toll free 877.695.6466

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